Strategies
Within each index, capital is deployed through a fixed mix of hybrid strategies. The blend is designed to balance directional neutrality, yield amplification and correlation diversification.
Strategy mix
| Strategy | Allocation | What it does |
|---|---|---|
| Delta-Neutral | 25% | Hedged positions that earn yield/fees while neutralizing price direction. |
| Looping | 25% | Recursive lend/borrow to amplify yield on correlated collateral, managed by health factor. |
| High-Correlation | 25% | LP and structured positions on tightly correlated pairs (low IL). |
| Medium-Correlation | 15% | Moderately correlated pairs for incremental fee capture. |
| Non-Correlated | 10% | Diversifying exposure uncorrelated to the core book. |
How strategies interact with indices
- Stable Pool leans on delta-neutral and high-correlation strategies (minimal IL).
- Coin Pool uses delta-neutral and looping on majors with disciplined leverage.
- DEX Pool weights high/medium-correlation LP where fee capture is richest.
- RWA Index runs the 3-corridor concentrated-liquidity engine on top of the strategy mix.
Looping & leverage discipline
Looping amplifies yield but introduces liquidation risk. YLDX manages it by:
- monitoring health factors continuously (Risk Center);
- de-leveraging automatically when a health factor approaches threshold;
- never looping into illiquid or thin collateral.
Concentration discipline
Across all strategies the ≤ 2.5% per-position cap holds. Strategy allocation describes how capital earns; the diversification rules constrain how much sits anywhere. The two together produce sustained, diversified yield instead of a fragile high number.
Rebalancing
Drift away from target allocations — or a breached concentration cap — triggers a rebalance. The AI Operator prepares the rebalance; the operator executes it through the multisig. See Rebalancing.