Strategy Information

This strategy manages deposits in crvUSD by allocating capital between two Curve liquidity pools: crvUSD/USDC and crvUSD/USDT. Allocation weights between these pools are dynamically adjusted based on performance metrics and market conditions, with the objective of optimizing yield while maintaining stablecoin exposure.

Deposited crvUSD is supplied as liquidity into the selected Curve pools, where it earns trading fees from stablecoin swaps. The LP tokens received from these pools are then staked through Convex Finance, boosting returns via additional CRV and CVX reward incentives.

Risk Management & Optimization

The strategy includes a periodic rebalancing mechanism that adjusts the allocation between the two liquidity positions every 90 days to optimize returns and maintain balanced exposure.

To ensure risk control, the strategy implements two key safety mechanisms designed to safeguard deposits against both market instability and pool-specific risks:

• Stablecoin Depeg Protection: If one of the USD stablecoins involved in the pools loses its peg by more than 2%, the strategy triggers an exit from the affected position.
• Pool Concentration Limit: If the strategy’s exposure in any of the pools exceeds 15% of the respective pool's total TVL, it will also trigger an exit to reduce concentration risk.

These mechanisms help safeguard deposits against both market instability and pool-specific risks, while supporting consistent yield generation.