AQTIS Yield Explained: How does AQTIS deliver such competitive yields?
AQTIS LSDs offer some of the most competitive yields of any LSD project. But how? In this post, we’ll explain how AQTIS achieves its class-leading yield.
The TL:DR? AQTIS generates yield differently from other LSD projects, making the AQTIS LSDs unique.
AQTIS yield explained
AQTIS is a next-generation DeFi company built on top of our AI-powered quant tech.
In phase one of our launch, we will offer a series of Liquid Staking Derivatives, or LSDs that take advantage of our quant tech. These are yield-bearing tokens that provide you with a yield, while also being able to be traded, transferred, and used in other DeFi applications.
There will be three LSDs at launch:
- qETH (10% -> ETH: 7.5%, AQTIS: 2.5%)
- QSD (15% -> USD stablecoins: 12.5%, AQTIS: 2.5%)
- QRT (TBA)
Each will offer a slightly different yield — you can dive deeper into these on our Gitbook page — depending on your preference, but all rely on our quant technology to generate that yield.
Our quant tech is an AI-powered trading system that analyzes the dynamics of the broader crypto markets and applies different strategies that harness AI/machine learning to consistently generate profits in the cryptocurrency market.
This tool, built by our in-house trading and machine learning experts, is typically only available to elite financial institutions. AQTIS is bringing this technology to our community and the wider Web3 space for the first time.
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How does AQTIS’ Quant Tech generate yield?
The quant tech, as mentioned above, is an AI-powered trading system built in-house by our team of experts.
At its heart, our quant tech employs several different trading strategies designed to capitalize on various market phases. These include:
- Mean Reversion — utilizes the principle that asset prices tend to gravitate back to their average values. This implies that when an asset’s price swings too far in any direction, reaching overbought or oversold zones, a reversal towards the original trend is highly probable.
- Breakout — entering a long position after the price breaks above a resistance level or goes short if the stock breaks below the support level. This model is focused on detecting new trends before they occur, via our unique approach to data analysis. Once we detect momentum, we ride the trend and exit the position once we’ve hit our goal.
- Trend Following — this strategy takes advantage of long, medium, or short-term moves. We’re market agnostic, meaning we can trade both sides of the market to ensure our investment strategy delivers.
These different strategies will be deployed in the portfolio, in multiple time frames and trading multiple assets, employing both long and short market directions.
Having a diverse range of strategies at our fingertips allows us to trade a non-correlated portfolio, meaning the three strategies complement each other.
For example, if one strategy is underperforming, there is a high likelihood that one of the other two can be deployed to ensure the portfolio’s performance remains positive.
How does AQTIS differ from other yield-bearing LSD projects?
There are several different ways LSD projects generate yield. They can be broken down into broad categories:
- Staking Rewards — Staking rewards are an incentive that blockchains provide to participants. Each blockchain has a set amount of crypto rewards for validating a block of transactions. When you stake crypto and you’re chosen to validate transactions, you receive those crypto rewards.
- Liquidity Provision — Yield farming allows investors to earn yield by placing coins or tokens in a decentralized application, or dApp, thereby providing liquidity to various token pairs.
Each of these has its benefits but also risks. Staking rewards typically (but not always) generate a consistent yield, of a few percent a year. Providing liquidity for DeFi applications can generate a far greater yield, but carries inherent risk in the underlying token being robust enough for long enough.
With AQTIS however, we do not rely on any third party to generate a yield. We generate a yield from our quant tech, that has been battle-tested using years of market data. You can find a detailed overview of the performance of our quant tech over on Github.
But as a reference, here are the high-level figures of how our quant trading strategies would perform, using data from the past three years.
Breakout Long — Averaged 20x return since 2020.
Breakout Short — 663% return across the full market cycle.
Mean Reversion Long — 90.8% APY return.
Mean Reversion Short — more than 100% APY return.
Trend Following Long — 141.92% returns.
This makes AQTIS unique in the crypto space, as we bring institutional-grade trading technology and make it accessible to everyone through our LSDs.
