Intro

You deposit USDG. The vault earns trading fees by providing liquidity to the NVDA/USDG pool, and a short NVDA position keeps your balance from swinging with the NVDA price.

How it earns

Every trade through the NVDA/USDG pool pays a fee to the liquidity in its price range. The vault keeps a range around the current price, so a share of each trade's fee goes to the vault.

A range holds NVDA, so on its own it would rise and fall with the stock. The vault shorts the same amount of NVDA on Lighter, a perpetuals exchange. The two offset, and what is left is the fee income.

The short's margin is vault capital too. It sits in a Lighter account owned by a vault contract, which can only send it back to the vault. The trading key can place orders but cannot move that money anywhere else.

A keeper runs the strategy around the clock. It moves the range when the price leaves it, resizes the short as the range's NVDA changes, and steps aside around scheduled events like earnings.

The moving parts

• Liquidity range — the vault's position in the NVDA/USDG pool, where the fees come from.
• Hedge — a short NVDA perpetual on Lighter that offsets the range's price exposure.
• Margin custody — a vault-owned contract that holds the hedge margin and can only return it to the vault.
• Keeper — the automated operator, limited to a short list of typed actions.