AQTIS Documentation
  • Introduction to AQTIS
  • QSD
    • What is QSD?
    • How does the yield work?
    • How do I buy QSD?
    • How do I generate yield?
    • How do I claim my rewards?
    • A deeper dive into how the yield works
    • QSD pricing dynamics
    • Permissionless Exit
    • How do I sell my QSD?
    • Quant Technology’s role in QSD
    • Compliance
    • In summary
  • QRT
    • Securing the quant tech
    • How do I claim my rewards?
    • Claiming Mechanics
    • Quant Tech Liquidity Management
    • Difference with Other LSTs
    • Compliance
    • In Summary
  • Quant Tech & AI Explained
    • Why we use quantitative techniques
    • The Investment Strategy Portfolio
    • The AQTIS Investment Thesis
    • Why we use Machine Learning/AI in our portfolio
    • How we manage risk
    • Quant Tech Workflow
    • Quant Tech Strategies - the AQTIS secret weapon
    • Conclusion
  • Quant Performance
  • Tokenomics
  • Ecosystem Liquidity Insurance Fund (ELIF)
  • Ecosystem Liquidity Aggregator
  • Calculations
    • Testing Performance
    • Total Value Locked
    • Liquidity Utilization
    • Position Sizing
    • The impact of slippage on performance
    • In summary
  • What is the AQTIS Buyback Process?
  • AQTIS FAQ
    • AQTIS Protocol TL:DR
    • What are Liquid Staking Tokens (LSTs)?
    • What is Quant Trading?
    • What are Composable Yields?
    • What is the Token Buyback Process and how does it contribute to Token Value?
    • Can AQTIS Freeze My Assets? What about Permissionless Exits?
    • What is the Maximum Supply of the AQTIS Utility Token?
    • What is the Maximum Transaction Amount for the AQTIS Utility Token?
    • Where Can I Buy AQTIS LSTs and the AQTIS Token?
    • What Blockchain Network Does AQTIS Utilize?
    • Is AQTIS Regulation Compliant?
    • How Does AQTIS Generate Revenue?
    • How Are Liquidity Rewards Distributed in AQTIS?
    • What’s the Minimum Staking Period?
    • Where Can I Find the AQTIS Utility Token Contract Address?
    • Why has AQTIS capped the TVL?
    • Why implement LSTs? Why not simply use a reward pool where people can withraw their "dividends"?
    • Why is there a standardized yield?
    • Why is the team not doxxed?
    • Why is AQTIS sharing its strategies with the community?
  • Disclaimer
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  1. QRT

Systemic Risk

As with any token, there are inherent risks. In the case of DeFi, one of the biggest risks is that a token’s price may drop so significantly that liquidity dries up, leaving token holders trapped with their assets. At AQTIS, we have designed our system to accommodate price fluctuations while ensuring that liquidity is consistently available for token holders.

Maintaining Liquidity Through Quant Tech

One of the core mechanisms that allows us to maintain liquidity, even during volatile market conditions, is the reward system generated by our quant tech investment strategy. This advanced system is at the heart of what we do, ensuring that even in challenging market environments, liquidity remains available to AQTIS LST holders.

We have rigorously battle-tested multiple investment strategies to optimize profitability, which is then utilized to:

  • Generate rewards for token holders.

  • Maintain token prices within a reasonable range.

  • Ensure continuous liquidity across all our LST pools.

Even in the event of a 30% market drawdown, our financial models are designed to continue covering liquidity and yield for all three of our LSTs: QRT, qETH, and QSD.

Protecting the Pegs of Our Tokens

We have implemented two key systems to protect the pegs of our tokens relative to their yield:

  1. Exit Liquidity via Liquidity Providers (LPs): For qETH, the peg is maintained by the qETH liquidity providers (LPs), ensuring that sufficient liquidity is always available for users who wish to exit their positions. The LPs directly support the liquidity needs of the token, providing stability even when market conditions fluctuate.

  2. Ecosystem Liquidity Insurance Fund (ELIF): The ELIF acts as a backup liquidity pool for all three AQTIS LSTs. When one of the liquidity pools is being drained, the ELIF serves as a buffer between the quant tech investments and the LPs. This allows instant liquidity to be provided by the ELIF without the need for the quant tech strategies to exit positions prematurely, which could otherwise lead to losses. By using ELIF to meet sudden liquidity demands, we significantly reduce systemic riskand protect the long-term health of the AQTIS ecosystem.

In short, AQTIS has been designed with multiple layers of protection to ensure that, regardless of market conditions, liquidity is preserved, yields are maintained, and token holders are safeguarded against extreme price fluctuations.

Last updated 8 months ago