Market Betting strategies

V3 pools enable providing liquidity asymmetrically. This enables “betting on a market movement”.

This means that one can get exposed mostly to ETH price while still farming the rewards, or to the other pool asset.

Compared to our other automated strategies like Price Adaptive or Block, Market betting strategies require from the user some activity.

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ETH Bull Expectation

If you expect the ETH price to increase, this strategy enables you to be exposed mostly to ETH while getting the APY from the pool.

If the ETH price increases by more than 5%, it rebalances to the original asset ratio to remain ETH Bullish for new deposits. If the price dips, there is still some buffer before it rebalances.

ETH Bull strategy is specifically for those who expect the ETH price to increase. But it can handle sideways movements or short dips.

❗ It’s advised NOT to use this strategy during longer downtrends.

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ETH Bear Expectation

The ETH Bear Expectation strategy is the same as the ETH Bull strategy, but it provides liquidity the other way. The majority of the holding is in the USDC and a bit in ETH.

This works well when the price dips and then goes sideways, or when the price slowly decreases.

ETH Bear strategy is specifically for those who expect the ETH price to decrease. But it can handle sideways movements or short upticks.

❗ It’s advised NOT to use this strategy during longer uptrends.