QUIXOTE
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Method

How it
works.

Picking a range means picking where your capital earns fees. Here is how we pick it, and when we move it.

  1. IThe range
  2. IIThe system
  3. IIIRebalancing
  4. IVAccounting
A bracket with a mill at its centre
I

The range

Too wide and most of the capital sits at prices that never trade. Too narrow and the price leaves the range within hours and earns nothing.

Volatility
Measured over one hour, one day and one week.
Depth
We stand back where the pool is already deep.
Inventory
The range skews to pull the vault back to a 50/50 split.
II

The system

Three parts off-chain decide. Four contracts on-chain hold the money. Keepers can move a range; they can never move funds.

YOUTHE ENGINE — OFF CHAINTHE CONTRACTS — ON CHAINTHE WORLDYour walletDeposit or withdrawHold vault sharesWatch the positionThe appChoose a vaultDeposit one asset or bothRead the ledgerThe dashboardRange, size, fees, lossEvery move, with its costIWhat it readsPool state and depthPrices and volatilityYour inventoryIIWhat it decidesBand width from volatilityWhether a move pays for itselfHow much capital to deployIIIWhat it signsSimulates, then submitsRetries, alerts, backs offIVRouterTakes one asset or twoSwaps to the right ratioMints your sharesVVaultERC-4626 accountingHolds the positionCollects the feesVIPositionUniswap v4 liquidityAdded, removed, movedVIIGuardPrice sanity checksSlippage and size limitsPause, if it mustOraclesAn independent priceUniswap v4Where the trade happensThe chainBase, and others to comeINTENTDECISIONEXECUTESTATE
Plate II — a deposit, from your wallet to a live position.
III

Rebalancing

Moving a range is a trade. Pulling liquidity out sells whatever rose, and gas and slippage are paid on top. If the new range cannot earn back that cost, the vault waits.

When we rebalance

E[ feesmove ]  −  E[ feesstay ]  >  gas  +  slippage  +  divergence⏟cost of the move\mathbb{E}\big[\,\text{fees}_{\text{move}}\,\big]\;-\;\mathbb{E}\big[\,\text{fees}_{\text{stay}}\,\big]\;>\;\underbrace{\text{gas}\;+\;\text{slippage}\;+\;\text{divergence}}_{\textstyle\text{cost of the move}}
IV

Accounting

Every vault is an ERC-4626 share. Fees collect into the position and push the share price up. Nothing is restaked or lent out.

Performance fee
10% of fees earned. Nothing else.
Lockup
None. Withdraw in any block.
Custody
The vault holds the assets.

Read the vaults, then decide.

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