After close to 3 months collaboration between the Lisk DAO and Arrakis, I’d like to share some insights into the performance of the Arrakis vault:
Using Arrakis’ Liquidity Bootstrapping Strategy, the vault has rebalanced to ~20% base asset composition over the last weeks and continues doing so until 50:50.
The current deployed liquidity profile resembles a order-book like liquidity profile and is targeted at providing deep liquidity for LSK/ETH while further bootstrapping the base asset.
If we look at the improvement on the price impact, the price execution for a $10k has significantly improved to drop by 50% on the sell side and stabilizes around 4% on the buy side.
Since the introduction of the vault, the overall trade volumes on Ethereum for LSK/ETH have significantly increased which was the initial proposal of the vault.
Arrakis continues the mandate to run active liquidity management strategies for the Lisk DAO and will provide further updates regarding the vault in the future.
For further References please contact us here