⚙️How does it work?

After collecting ETH, SOL or other coins from the tax into our AUM accounts, we delve into exploring potential trading pairs within the vast landscape of liquidity pools. Let's break down the strategic approach guiding our decision-making process:

Choosing the right pair

We look for pairs with a high trading volume to total value locked (TVL) ratio. This ensures we can snag a bounty of trading fees.

Preserving the A.U.M. capital

Venturing into the realm of risky coins, including new and somewhat dubious memecoins, might seem tempting due to their high trading volume. This sets the stage for potentially enormous APRs. Yet, the catch is their volatility, posing a substantial risk of capital loss. It can also be a huge capital gain, though. That's why we dig a lot into every coins when we provide liquidity. On the flip side, opting for pairs with two stablecoins ensures a rock-solid foundation. The risk of capital loss is close to zero. However, this safety comes at a cost - reduced trading fees due to a huge liquidity provided in these pairs. With safety comes liquidity. The art lies in finding that sweet spot.

Strategic agility

Navigating through this ever-changing market requires strategic agility. Mindful of high gas fees especially on Ethereum, we opt for liquidity pools with sustained performance, reducing the impact of gas costs on our returns. Finding the right balance guarantees a smooth voyage for our Web3 Hedge Fund.

Maximazing $HEDGE trading volume

Let's say we aim for a 150% APR for our holders. If the total value of $HEDGE held by eligible revshare holders is $1 million, distributing almost $4,110 daily means aiming for a whopping 100% daily APR on our LP positions (36500% yearly), a near-impossible feat without enormous risks. Now, if our AUM is $4,110,000, generating only 0.1% daily on our positions (36.5% yearly) becomes much more achievable. The lesson here? The larger our AUM, the easier it is to provide significant APR for eligible HEDGE holders. The more $HEDGE is traded, the larger our A.U.M. grows, reducing the risk to our capital while still offering substantial APRs to our eligible holders. Therefore, our primary focus is on increasing $HEDGE trading volume to ensure the prosperity of our A.U.M. account.

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