Create and manage strategies to earn performance fees
In SteakHut Liquidity V2 we have empowered created from across DeFi by developing composable smart contracts and an intuitive user interface (UI) that enables users to effortlessly create and manage permissionless liquidity strategies directly from the dApp.
Users gain the unprecedented ability to manage liquidity across multiple pools, spanning various ranges, with complete control over their performance fees and strategy management.
This enables creators to easily develop and manage liquidity strategies available to the public or whitelisted communities and earn performance fees for growing and managing strategies. The process of creating a strategy is made simple, with no coding required.
Permissionless Vault Creation
Anyone can create a liquidity strategy directly from the SteakHut front end. Using the SteakHut front end, anyone can easily create a liquidity strategy and deploy vaults across all supported CLMMs and blockchains.
Users have complete control over the parameters of the vault allowing you to deploy a vault for all pools available on the DEX. Users can configure vault settings, keep the vault private or publish it for all users, and set performance fees according to their preferences.
We have built ease-of-use into rebalancing liquidity ranges. Using their own custom strategies and understanding of markets, strategy managers can deploy multiple liquidity ranges across price points that they believe will yield profitable liquidity-providing opportunities, and deploy liquidity at ranges they wish to buy and sell.
SteakHut accommodates the apportionment of funds across up to 20 price ranges and multiple fee tiers, affording complete control in deploying both simple and institutional-grade liquidity strategies.
The liquidity manager pays the gas fees for rebalancing the strategy. Every time the liquidity manager performs rebalancing, all the selected liquidity ranges are removed along with the accrued fees, which are then reinvested.
SteakHut gives strategy managers access to inventory management features, allowing the swapping and holding of tokens within the liquidity vault.
Inventory management allows for full flexibility of the strategy. Managers can swap tokens to alter the composition of tokens within the vault. This may be used to deploy a "bullish" or "bearish" outlook on the performance of an asset or to return the vault ratio back to a neutral 50:50 allocation.
By burning vault ranges the liquidity manager can remove active liquidity to return tokens to be passively held within the vault strategy. This may be used during periods of high volatility where divergence risk is expected to outweigh swap reward fees.
Upon creating a liquidity vault, the strategy manager can configure a performance fee accrued by the strategy and an address to receive this fee. This mechanism allows creators to earn a share of the swap rewards generated by the strategy.
Being a performance fee this is calculated based on the swap rewards generated by the strategy, no fees are taken on the underlying capital or upon depositing nor withdrawing. Strategy managers retain the flexibility to adjust the performance fee by configuring the vault settings after creation.
SteakHut's liquidity vaults are created for full flexibility for a wide range of use cases, allowing flexibility for performance fees helps enable compatibility for multiple user types both institutional and retail, and enables strategists to become competitive in fees charged on strategies.
Private and Public Strategies
Liquidity vaults can be deployed as either private or public strategies. Public strategies are readily accessible by all users directly from the SteakHut dApp, making them ideal for creators looking to expand their user deposits and earn performance fees.
Private strategies are exclusively accessible to users selected by the strategists, offering a level of exclusivity and control. Additionally, strategists have the option to set maximum capital/Total Value Locked (TVL) limits on a strategy, a feature particularly advantageous for high-frequency specialized strategies.