> For the complete documentation index, see [llms.txt](https://whitepaper-old.steakhut.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper-old.steakhut.finance/getting-started/liquidity/passive-strategies/pegged-pair-strategy.md).

# Pegged Pair Strategy

## Strategy One (Constant price, non-rebalancing)

### Description

Liquidity ranges are set at various bin positions surrounding `bin 8388608` depending on backtesting results. For more volatile pegged pairs, wider bin ranges will be used. For less-volatile pairs, narrower bin ranges will be used.

Liquidity will only be deployed when the active bin is surrounding or at `bin 8388608`, to maintain vault ranges and minimize the impacts of slippage.

### Applicable Pool Types

Stable-stable asset pairs trading out of parity or pegged pairs trading around a constant price

*Example Pools: WBTC.e-BTC.b*

### Advantages

* Accrued fees will be compounded back into the position regularly on behalf of LPs compounding yield.
* The strategy will enable LPs to capture a large range of profitable swap fees.
* The strategy is non-rebalancing to mitigate the impacts of IL.

### Risks

* During times of high volatility in the markets, the allocation of assets could vary quite significantly from 50/50.
* Compounding and deposits during highly volatile times will not be deposited until either`bin 8388608` or surrounding bins are reached, which may lead to temporarily lower APRs.
* The liquidity book requires deposited reserves to meet a bin's composition. As such, amounts deposited when the active bin is outside of `bin 8388608` may result in some slippage.

## Strategy Two (Proportional price, rebalancing)

Coming Soon!

### Description

Coming soon!

### Applicable Pool Types

Related asset pairs which do not trade at a constant value, but trade in close sequence

*Example Pools: sAVAX-AVAX*