Benefit from the best decentralized finance positions. Lobster's algorithms automatically manages and optimizes them for you.
Deposit your cryptos in a secure, non-custodial vault, connected to Lobster's strategies.
And... that's it !
Choose the crypto you want to generate interests on. Lobster's algorithm will automatically handle your exposure, and make sure it is neutral.
Lobster is built on top of the most trusted decentralized finance protocols, such as Uniswap v3 or AAVE v3. Your Lobster experience works as follows :
Connect your wallet on Lobster App, and select a strategy
Deposit your favorite crypto in a non-custodial vault, associated with the strategy.
You will receive an equivalent amount of receipt token, which represent your deposit and the generated interests.
Lobster's algorithm will determine the best operations to perform on your deposited assets, based on market data.
The operations are automatically triggered on the underlying protocols whenever needed.
The generated interest are deposited on your personal vault via the receipt tokens, and you can withdraw at any time, by deposing them back.
And... That's it. You have nothing more to do.
Just come from time to time to see how much you have earned, and how your crypto are working the best way.
One of the main issues that you may face when trying to generate yield in DeFi is that, because of market conditions, parameters of your manual positions sometimes need to be changed, especially when using Uniswap v3 concentrated liquidity. Constant monitoring and rebalancing takes a lot of time, but lack of rebalancing reduces considerably your yield.
Lobster's algorithm monitors your positions every five minutes, to automatically optimize and rebalance them when needed, depending on market conditions.
We know that high volatility period may happen on crypto markets, that can have a negative impact on your DeFi positions, through impermanent loss or liquidation risk. If this happens, you have to react fast, and that is exactly what Lobster's algorithm does.
Thanks to its constant market and on-chain observation, Lobster's algorithm automatically triggers positions exits when the risk of negative impact on your yield is too high.
The most profitable DeFi positions may involve the deposit of different tokens in order benefit from their yield. This makes your investment harder to manage and monitor.
When investing through a Lobster strategy, you only provide one token. Lobster's algorithm automatically handles needed tokens, along with maintaining your exposure to the initial token, thanks to AAVE.
As a user, your experience is very simple :
1- First, select your favorite strategy. You can then deposit your favorite crypto in the associated vault through your crypto wallet, and get an equivalent in receipt token.
2 - That’s it ! Your yield is generated automatically. Come from time to time to check your interests, and withdraw whenever your want with your receipt tokens.
The question is, what happens in the back ?
Lobster's algorithm will smartly allocate your money on the underlying protocols, and automatically optimize your position depending on market conditions.
As a DeFi user, you could setup these strategies manually, but they are very technical and take a lot of time to monitor. Through Lobster, such strategies are managed by a dedicated, automated algorithm, to offer you the best of these strategies, without effort.
Yes, definitely.
First of all, you manage all your allocations through your crypto wallet. Your cryptos are safely stored in a secure and non custodial vault, which is a smart-contract powered by dHedge on the associated blockchain. Deposit your coins, and get a receipt token which allow you to withdraw anytime, autonomously.
You are the only one allowed to withdraw your cryptos.
Lobster's algorithm is plugged to your vault, and has the permission to perform a shortlist of operations, defined in the vault's smart contract, remotely. Among them : liquidity providing on Uniswap V3 and lending on AAVE basically.
Every other transaction is forbidden, which means that we cannot perform out-of-scope operations, or withdraw your funds by any manner. These smart contracts are developed by our partner dHedge, and every transaction and contract is 100% transparent on the blockchain.
Yes, whenever you want, just by depositing the associated amount of receipt token. Its value is correlated to the interests generated through the vaults. Please note that, for safety reasons, our partner dHedge has setup a lockdown period of 24h after deposit, before being able to withdraw your assets.
Lobster takes 2 types of fees :
- Deposit fees: 0,45% of the deposited amount, mainly for safety and infrastructure reasons. You may take in consideration the bridge fees or the gas fees when investing. We don’t take any additional fees on your operations.
- Management fees : 3% per year on the funds managed in the vault, but they are already taken in consideration in the performance we display you. We split them all over the year and perceive them continuously.
You will, of course, be informed of the fees at vault creation, but on our interface, the performance shown is the net performance you will realize. We will have already perceived our fees and deducted them, to display you what you will effectively earn.
Basically, a market neutral strategy aims to minimize its exposure to market volatility and generate consistent returns. It consists in a combination of DeFi positions, and among them we usually find :
- A position to generate yield, such as lending, liquidity providing, farming…
- A position to compensate the potential consequences of the volatility of one of the assets in order to be hedged and adjust our exposure, such as a short, borrowing...
It's important to note that the specific strategies and mechanisms can vary across different platforms and providers, and each one may have its own unique approach.
The goal of Lobster's strategies are to provide investors a more stable and predictable long term investment option, reducing the risk associated with sharp market fluctuations.
When using Lobster's strategies, they automatically minimize and mitigate the risk for you, which is the most difficult and time consuming part about DeFi investment. However, the risk never totally disappears and can still affect your portfolio in some way. These are the main risks and how we mitigate them :
Impermanent Loss: By predicting it with our algorithms, we are able to take it in consideration and reduce it when calculating and generating your interests. The APY announced includes impermanent loss.
Exposition risks : Our smart algorithm is able to monitor very precisely and rebalance the positions when needed, to maximize the return. This is the main benefit of using our vaults instead of implementing the strategies yourself.
Market risks : by regularly monitoring and rebalancing market neutral positions, we are able to limitate the impact of overall market movements. Note that sudden and significant price movements across various cryptocurrencies can affect the effectiveness of a strategy for a given timeframe.
Liquidity Risk : We calculate the maximal amount that can be invested on each strategies for it to less impact your returns.
Smart Contract Risk : All our partner’s smarts contracts , like dHedge’s , are audited and public. You can find these audits link on their website, or in our documentation.
Counterparty risks : We only use verified well known protocols, whitelisted by dhedge community.
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