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Swap In and Out

How to swap into a position in Thetanuts Stronghold

Summary

Users can enter or exit positions by swapping between the underlying and the Index position. They can do so in the multiple chains where a liquidity pool is present.

Slippage

When there are situations of high slippage on the swap, a warning will flash and users with larger swap sizes will be encouraged to directly deposit into the underlying vaults that constitute the index.

Liquidity

Liquidity of the Stronghold index is concentrated on the source chain. Therefore, when there is high slippage warning flashes, should liquidity be on a derivative chain, the user will be encouraged to bridge their underlying liquidity to the source chain to directly deposit.

Vault Composition

Vault composition is determined by the Protocol team based on rigorous back testing and periodic adjustment to propose the optimal profitable risk adjusted composition.

Example

Sample Index Composition
In this index, the index is an ETH-Call selling volatility on various strikes and tenors. When a user does a direct deposit, they do so in accordance to the weight defined by the protocol. Example, a user is deploying $1 million equivalent notional, in this case, 1/3 will be deposited into the 1-Day WETH call, 1/3 into the 2-Day WETH call, 1/3 into the 3-Day WETH call. The operation of these underlying vaults is the same as Thetanuts Basic vaults.