Strategies
The Strategies page acts a repository showing earning opportunities across the ecosystem, both Automated Market Making strategies for RUJI Trade orderbook (provided by RUJI Pools), and opportunities such as Lending, staking, providing liquidity for Perps trading, or strategies provided by other ecosystem projects. 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. Use the tools at your own risk.
Automated Market Making (AMM) Opportunities
XYK Strategy
The 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. It is commonly presented it as a risk in DeFi, but it's actually a powerful feature if you don't want to time the market for your entry and exit.
THORChain CLP Strategy
Provides liquidity to THORChain Continuous Liquidity Pools paired with RUNE on the Base Layer, using a constant product (XYK) bonding curve. Benefits and risks are similar to those of the XYK Strategy on the App Layer. Yield is generated from a dynamic slip-based fee, which increases alongside the size of the swaps relative to the total liquidity in the pool. LPs in the pools also receive a share of the Rujira revenue that is sent to THORChain. The slip-based fee and Rujira's revenue are distributed between LPs and THORChain Node Operators depending on the state of the Incentive Pendulum. The share going to LPs is then distributed between each pool proportionally to their contribution to the total slip-based fees. More info: https://docs.thorchain.org/thorchain-finance/continuous-liquidity-pools
Other Core Opportunities
Perps Liquidity Provisioning
Provide liquidity to the RUJI Perps protocol and earn yield for doing so.
Deposits are used by traders as counter-collateral for their positions. In return, you receive LP or xLP tokens that generate yield which comes from fees paid by traders. These are the APRs you see displayed for each liquidity pool.
LP tokens that are not currently locked in trader positions may be redeemed immediately for the liquidity that you provided.
Redeeming xLP tokens takes 45 days from when you submit the request—these tokens unlock linearly over this time period, and you receive the APR from LP tokens on the full amount.
Once you have accrued yield, you may withdraw it at any time directly to your wallet or reinvest it to earn additional yield.
Key Risk: Deposits are not risk-free. When traders win, counter-collateral is removed from the liquidity pool and LP/xLP tokens lose value. But when traders lose, your LP/xLP tokens increase in value. This is referred to as impairment.
Staking
RUJI
Stake RUJI to earn a share of Rujira core protocols revenue. Stakers got two options with revenue shared 50/50 between each:
Single-sided RUJI staking: Get a share of 50% of Rujira protocols revenue with pure exposure to RUJI and no Impermanent Loss risk.
RUJI/RUNE LP staking (pending): Get a share of 50% of Rujira protocols revenue with a dual exposure to RUJI and RUNE. Staking with a LP token means your are taking Impermanent Loss risk, but you will also earn a share of the trading fees in the RUJI/RUNE LP.
For each option, tokens can be staked to earn claimable USDC, or set to auto-compound, buying & staking more RUJI (or RUNE/RUJI LP) with the USDC rewards automatically.
Users opting for the auto-compound option receive sRUJI (or sRUJI/RUNE LP), a liquid representation of their share in the strategy that can be redeemed for RUJI (or RUJI/RUNE LP) at any time.
TCY
Stake TCY and earn 10% of THORChain revenue distributed in RUNE once every 24 hours.
Users can chose the TCY AutoCompounder built by AutoRujira to passively grow their TCY holdings by automating the reinvestment of rewards. Rewards are sent directly to the smart contract which converts the RUNE into more TCY via RUJI Trade and redistributes it to depositors — compounding their position over time.
Users opting for the auto-compound option receive sTCY, a liquid representation of their share in the strategy that can be redeemed for TCY at any time.
NAMI
Stake NAMI to earn a share of Nami protocols revenue:
25% of the fees generated by Nami Index are distributed to NAMI stakers.
90% of the fees generated by Nami Earn are distributed to NAMI stakers.
NAMI can be staked to earn claimable USDC, or set to auto-compound, buying & staking more NAMI with the USDC rewards automatically.
Users opting for the auto-compound option receive sNAMI, a liquid representation of their share in the strategy that can be redeemed for NAMI at any time.
Indexes and LSTs
yRUNE (RUNE + TCY with yield and opportunistic rebalancing)
yRUNE combines RUNE and TCY into one asset using vault infrastructure built by Nami Index. It is the first liquid RUNE based asset that also captures yield from THORChain system income. With Nami's rebalancing engine, yRUNE constantly rebalances the underlying RUNE and TCY to capture price swings and market inefficiencies while taking advantage of TCY generated fees.
Deposit into yRUNE are always made from RUNE, and redemption always to RUNE.
RJI (Rujira Index)
The Rujira Index (RJI) is a basket of tokens native to THORChain that tracks the performance of the App Layer economy. It currently comprises 6 components (RUNE, RUJI, TCY, LQDY, NAMI and AUTO, with more to be added as the ecosystem growth) combined into one asset using vault infrastructure built by Nami Index. It is intended to capture Rujira ecosystem growth as a whole. The index does not auto-rebalance; therefore, it is designed to continuously overweight the top performers and underweight the underperformers.
Deposit into RJI are always made from USDC, and redemption always to USDC.
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