# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://whitepaper.steakhut.finance/getting-started/liquidity/steakhut-strategies/stable-strategy.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.