Sub-strategies

Generalized DEX Strategy (Concentrated Liquidity)

Liquidity is provided in a price range where most trading happens. Earned fees and rewards are periodically collected and rolled back into the position or a re-centered range.

Mechanics.

• Pairing. For a pair like HYPE/USDT0, the adapter pulls inventory from the vault (or coordinated vault inventories) to acquire both legs.

• Range selection. Choose ticks [lower, upper] around mid-price P using one of: static, volatility-adaptive, or inventory-aware policies.

• Positioning. Mint the CL-LP position; fees accrue in position tokens; incentives accrue as reward tokens.

• Harvest. Collect fees/rewards → swap to underlying → either (a) compound into the same band or (b) rebalance by burning and minting a new band if drift or volatility thresholds are met.

• Accounting. totalUnderlying() equals the position’s current value (both legs) plus idle and unclaimed rewards marked to oracle/AMM TWAP.

Risk considerations. Impermanent loss, out-of-range fee starvation, venue/AMM math risk, and rebalancing slippage. Guards: band width limits, min liquidity, slippage ceilings, TWAP checks, and rebalancing cool-downs.

Generalized Lending Strategy

Plain-language summary. Assets are deposited into a lending market to earn interest and any venue rewards. This is the most stable source of return in the mix.

Mechanics. Supply the underlying to a lending venue to accrue interest; claim venue rewards at harvest, swap to underlying, and re-supply. totalUnderlying() reflects principal plus accrued yield. Venue selection considers utilization, rate models, reserve factors, and liquidity depth. Risks include venue/contract risk, oracle anomalies, and temporary illiquidity during high utilization.

Generalized Looping Strategy

Plain-language summary. A conservative leverage loop borrows against collateral, swaps the borrow back into more collateral, and repeats until reaching a safe target. This amplifies carry but requires strict protection.

Mechanics and safeguards.

• Target LTV L. Set below collateral factor CF with a safety margin. Effective leverage approximates 1/(1-L).

• Net carry.

  APR_net ≈ Leverage * r_supply − (Leverage − 1) * r_borrow + emissions − costs

• Controls. Health Factor (HF) guard, LTV_max, repayment rules on stress, and oracle freshness/staleness gates.

• Delever policy. If HF approaches guard, repay borrows with harvested proceeds or by partial unwind; pause re-leveraging until conditions normalize.

• Risks. Liquidation on rapid drawdowns, borrow spikes, oracle issues, and swap slippage under stress.

Harvest Automation (In-House Keeper)

Plain-language summary. A dedicated Hypervault bot runs the protocol playbook: harvest rewards, convert them, apply fees, redeploy capital, and perform any safety actions.

Policy and execution.

• Caller. In-house keeper; no third-party services or caller incentives.

• Triggers. Time-based cadence per adapter class; profit-based thresholds; risk-based triggers (e.g., HF drift, band drift).

• Atomic sequence.

  1. Claim rewards per adapter.

  2. Swap to underlying with slippage caps and route fallbacks.

  3. Service safety actions (delever loops, widen bands).

  4. Decide compound vs. rebalance for CL-LP.

  5. Compute performance fee, transfer to the fee recipient EOA (see Fees), update accrual index I, redeploy remainder.

  6. Emit harvest events for indexing and dashboards.

Failure handling. Graceful degradation: skip paused venues, leave rewards idle when swaps are unsafe, and avoid blocking other adapters. All actions recorded via events for observability.