Strategies - Put your assets to work
Strategies Overview
Q: What is Strategies? Strategies is the place where you can see all ways to earn on Rujira. It gives you simple options and more advanced ones in one clear view, including RUJI Pools automated market making strategies, Lending vaults, staking, Perp LPs and more.
You can access Strategies at rujira.network/strategies.
Q: What different strategies are available? The following strategies are currently available:
XYK Pools
Fixed-range Concentrated Liquidity Pools (soon)
THORChain Continuous Liquidity Pools
Lending Vaults
Staking
Perp LPs
Q: What is an Automated Market Maker (AMM)? RUJI Pools is our multi-strategy Automated Market Maker. For each trading pair, it manages a stock of base asset (e.g. BTC) and quote assets (e.g. USDC), automatically placing buy and sell orders on RUJI Trade orderbook to provide liquidity. Each strategy follows a specific set of rules to define how much of each asset to buy or sell at various price levels. Each strategy generates some return in the form of a spread every time it takes a trade (i.e. sells at a slightly higher price than it bought for / buys at a slightly lower price than it sold for).
AMM strategies democratize access to market making and allow anyone to put any two assets you are happy to get exposure to at work to generate some yield.
Q: What makes Rujira’s AMM unique? RUJI Pools works directly with RUJI Trade, our on-chain orderbook DEX. Liquidity from each strategy is placed into the orderbook in real time based on each strategy rules.
Rujira's unique design separates the DEX (RUJI Trade) from the multi-strategy AMM (RUJI Pools) with all strategies adding liquidity to the same orderbook, resulting in deeper markets for traders, while offering multiple opportunities with different risk profiles for everyone to become a market maker.
Strategies - AMM/XYK
Q: What is an XYK pool? An XYK pool is a market-making strategy that keeps a 50/50 balance between two tokens (for example, BTC and USDC).
When one token goes up in price, the strategy automatically sells some of it and buys the other, earning small profits from these price movements.
This approach reduces downside risk compared to simply holding the tokens when price goes down, but it also lowers upside gains when price goes up. It’s a powerful tool for people who want steady returns with less volatility.
You can access XYK Pools here: https://rujira.network/strategies?filters=BowPoolXyk For more details, see the XYK strategy docs.
Q: How can I open a position? Go to the Strategies page, filter by XYK, choose a strategy, enter the amount you want to provide, and sign the transaction.
Q: What is impermanent loss? Impermanent loss (IL) is the reduction in value that happens when the prices of the two tokens you provided to a liquidity pool move apart, leaving you with less total value than simply holding them separately. Because an XYK pool automatically rebalances to a 50/50 target ratio, it sells some of the token that goes up in price and buys more of the one that goes down. If prices do not return to where they were when you entered, you end up with more of the underperforming token and less of the outperforming token, making the value of your position lower than if you had simply held the two tokens separately.
If volumes have been good during the period, the fees you generated by providing liquidity should more than offset the IL. If prices come back to their level at the time you opened your position, the IL will be reverted and the trading fees you earned will be pure profit.
Strategies - AMM/Fixed-range Concentrated Liquidity
Q: What is a Fixed-range Concentrated Liquidity pool? A Fixed-range Concentrated Liquidity (FCL) pool lets you provide liquidity within a specific price range instead of across the entire market.
This means your capital works more efficiently: you earn higher fees when trading happens inside your chosen range.
The tighter your range, the more volumes you will facilitate while price is inside your range and the more fees you will earn. The downside is that the tighter your range, the more likely price will move outside and you will be left holding the underperforming asset and not generating yield while price is out.
Finding the range that works for you depends on your time horizon and what your prospective view on the two tokens prices is. Taking the example of a BTC/USDC FCL position, a helpful way to think about it is to ask at which price you would be happy to be holding 100% BTC, and at which price you would be happy to be 100% in USDC.
Let’s say current price is $90,000 and you looked at the charts and believe it’s unlikely BTC will drop below $70,000, or go above $150,000 this cycle, which is the time horizon over which you plan to hold this position. Those would be the two limits of your range, it means you are happy to keep buying BTC with USDC till it drops to $70k and then have 100% of your position in BTC, or keep selling BTC for USDC till it reaches $150k and then have 100% of your position in USDC. Meantime, you are collecting fees on the trading volumes generated by your position, making money on volatility as long as the price stays in your range.
You can access CL Pools here: [coming soon].
For more details, see the FCL strategy docs.
Q: How can I open a position? Go to the Strategies page, filter by FCL, choose a pair for which you want to provide liquidity, enter how much you want to provide and your range, and sign the transaction.
Q: What is impermanent loss? Impermanent loss is the reduction in value that happens when the prices of the two tokens you provide move apart, leaving you with less total value than simply holding them separately.
With fixed-range concentrated liquidity, your funds are active only within the price range you set. As the market moves within your range, the strategy sells the outperforming token to buy the underperforming token, making the value of your position lower than if you had simply held the two tokens separately.
If the price moves outside your range, your position becomes fully one-sided, and the loss becomes larger if the price never returns. This means impermanent loss is amplified for FCL positions compared to a standard XYK LP, but the yield is also much higher as long as the position remains in range.
Strategies - AMM/THORChain Continuous LP
Q: What is a THORChain Continuous Liquidity Pool? A Continuous Liquidity Pool (CLP) provides liquidity to THORChain’s native pools, which pair tokens with RUNE using a constant product AMM model (XYK) and a dynamic slip-based fee. It works similarly to the XYK strategy on Rujira but directly on the THORChain base layer.
You earn yield from:
Slip-based fees, which increase with trade size
A share of Rujira’s revenue that is sent to THORChain
Rewards are split between liquidity providers (LPs) and THORChain node operators based on the Incentive Pendulum*.
You can access Continuous LPs here: rujira.network/strategies?filters=ThorchainPool For more details, visit the Continuous LP docs: https://docs.thorchain.org/technical-documentation/thorchain-finance/continuous-liquidity-pools
*Incentive Pendulum: a system that dynamically balances rewards between THORChain’s liquidity providers and node operators to keep the network healthy.
Q: How can I open a position? Go to the Strategies page, filter by Continuous LP, choose a pool, enter the amount you want to provide, and sign the transaction.
Q: What is impermanent loss? Impermanent loss is the difference in value between providing liquidity and simply holding your assets, caused by price movements between the two tokens in the pool.
With THORChain’s Continuous Liquidity Pool (CLP) model, the pool automatically rebalances your assets as prices move to keep the value of each side at 50/50. When one asset increases in price relative to the other, the pool sells some of it into the other asset to keep the pool balanced. Over time, this leaves you with more of the asset that underperformed and less of the one that outperformed.
THORChain reduces the impact of impermanent loss through its fee structure. Swappers pay liquidity fees, and those fees go directly to LPs. When the pool is active and swap volume is high, these fees can offset or even exceed impermanent loss. If prices never return to where they were when you entered, the difference between the LP value and the hold value becomes your impermanent loss.
Strategies - Lending
Q: What are Lending Vaults? Lending vaults are where all assets from lenders are pooled together. For example, all BTC deposited by lenders is combined in a single BTC lending vault, and borrowers can take loans directly from that shared pool.
You can access them here: rujira.network/strategies?filters=GhostVault
Q: What happens to the assets that I lend out? Your assets are added to the lending vault and combined with those from other lenders. When someone borrows that token, it comes from this shared vault, and the interest paid is split pro-rata among all lenders.
Q: Can I always withdraw my assets? You can withdraw your assets as long as they are not currently borrowed. If most of the vault’s assets are being borrowed (high utilization rate*), you may need to wait until some borrowers repay or new lenders add more liquidity.
*Utilization rate: the percentage of total deposited assets that are currently borrowed.
Q: How is the lending rate determined? The lending rate depends on the utilization rate:
When more of an asset is borrowed, or when some lenders withdraw from the vault, the rate goes up.
When borrowing demand is low, or when more lenders deposit into the vault, the rate goes down.
This market driven mechanism helps balance supply and demand and keep interest rates in line with the broader DeFi market, attracting borrowers when there is an excess supply and rates are low, and attracting lenders when there is an excess demand and rates are high.
Strategies - Staking
Q: What is staking? Staking lets you deposit your token in a smart contract (sometime with a lock up period) to earn rewards over time. It’s a simple way to support the network and earn passive income.
You can access staking here: rujira.network/strategies?filters=StakingPool
For more details, visit the staking docs.
Q: What tokens can be staked? You can currently stake the following tokens:
Q: What is the difference between Standard and Auto-Compounding staking?
Standard staking: You earn rewards (usually in $USDC) which you can claim whenever you want.
Auto-compounding staking: Your rewards are automatically used to buy more of the same token, which increases your staked balance over time.
Example: If you stake $RUJI, you normally earn $USDC rewards. With auto-compounding turned on, your $USDC is automatically used to buy more $RUJI, which is added to your stake.
Q: Is there an unstaking period? Staking might be subject to an unstaking period during which you have to wait after signaling your intention to unstake, before you can access to your tokens:
$RUJI: No unstaking period (instant).
$TCY: No unstaking period (instant).
$AUTO: 14-day unstaking period.
$LQDY: 7-day unstaking period.
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