or users' convenience, the RUJI Pools UI also acts a repository showing earning opportunities across the ecosystem, both Automated Market Making strategies for RUJI Trade orderbook, and opportunities such as or providing liquidity for . This list will be updated as more protocols roll out and more opportunities become available.
Before making a deposit, make sure to read the Terms & Conditions and understand the risks. Rujira is a suite of open-source, permissionless, non-custodial smart contracts—we simply provided tools, not financial advice or advice of any sort.
Automated Market Maker (AMM) Opportunities
XYK Strategy
Uses a pricing and order sizing algorithm replicating the standard XYK (constant product) logic used by a traditional AMM-DEX like Uniswap v2, but tailored for an orderbook DEX.
The strategy looks to maintained a 50/50 balance (in term of dollar value) between the two tokens in the pair (e.g. BTC/USDC). This means, as prices move, the strategy is selling the outperforming token (e.g. BTC) and buying the underperforming token (e.g. USDC). As prices reverse, the strategy automatically rebalance towards the initial state, but it buys back the (now underperforming) token (e.g. BTC) at a slightly lower price than what it was sold for. The difference (spread) between the price the token was sold for and the price it was bought back at, multiplied by the quantity bought/sold, net of RUJI Trade maker fee, represents the market making profit of the strategy. The return generated is automatically compounded inside the LP.
The XYK strategy can be thought of as a 50/50 index composed of two tokens that generates some yield when there is volatility. It lowers the risk of underperformance to the downside vs. a simple buy & hold strategy, but it also lowers the upside potential. An XYK strategy with half of the LP in stablecoin is a good alternative to buy & hold for the more risk-adverse profiles willing to sacrifice upside potential to mitigate downside risk.
Example: To understand the XYK Strategy's risk profile, let's look at a few scenarios:
At T=0: BTC trades at $100k, Alice and Bob have each $100 to invest, Alice uses the full amount to buy BTC; Bob puts it into a BTC/USDC XYK LP ($50 in BTC paired with $50 in USDC).
At T = 1: BTC price has dropped by -20% to $80k. Alice's buy & hold positon is now down by -20% at $80, tracking BTC loss perfectly. Thanks to the XYK strategy, Bob's LP position is only down by -10.6% at $89.4 (excluding yield); on top of that, the position generated ~$2 in market making profits, putting Bob's total position value at $91.4, down -8.6% only, doing significantly better than Alice and her buy & hold strategy in a bear market scenario.
At T = 2: BTC price has bounced back by +50% to $120k. Alice's buy & hold positon is now worth $120, up +20% vs. entry, tracking BTC gains perfectly. Bob's LP position is now worth $109.5 (excluding yield) and generated another ~$2 of yield bringing the total position value to ~$113.5, also up, but only +13.5% vs. entry. In a bull market scenario, the XYK strategy is still performing well, but not as good as Alice and her buy & hold strategy.
Key Risk: Impermanent Loss (IL) is the loss in the LP value due to the change in quantity of token X and Y during a given period, due to the AMM selling the outperforming token and buying the underperforming one. This loss is in addition to price gain/loss due to the change in prices, assuming the quantity of token X and token Y in the LP had remained the same. The loss is called "impermanent" because it reverses if prices come back at the level they were at the time of deposit.
