> For the complete documentation index, see [llms.txt](https://whitepaper.steakhut.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.steakhut.finance/getting-started/liquidity/steakhut-strategies/stable-strategy.md).

# Stable Strategy

### Description

Liquidity ranges are deployed at set tick ranges surrounding the $1 price range depending on backtesting results. For more volatile stablecoin pairs, wider bin ranges will be used. For less-volatile pairs, narrower bin ranges will be used.

Two liquidity ranges will be deployed within each vault to create a Gaussian distribution, that is liquidity be highest at the active price range (usually $1) and tapered off at ticks around this price range. This is based on backtested data and dramatically increases liquidity utilization and swap fee rewards.

### Applicable Pool Types

Stable-stable asset pairs closely trading in parity

*Example Pools: USDC.e-USDC, USDT-USDC, USDT.e-USDT*

### Advantages

* Accrued fees will be compounded back into the position regularly on behalf of LPs compounding yield.
* The strategy will enable LPs to capture a large range of profitable swap fees.
* The strategy is non-rebalancing to mitigate the impacts of IL.
* Multiple ranges within a single vault allow higher capital efficiency and higher swap rewards.
* Socialization allows for the reduction of gas fees.

### Risks

* During times of high volatility in the markets, the allocation of assets could vary quite significantly from 50/50.
* During times of high volatility fee APRs will temporarily drop to 0% until trading occurs at a healthy peg price.