# Stable Strategy

### Description

Liquidity ranges are set at various bin positions surrounding `bin 8388608` depending on backtesting results. For more volatile stablecoin 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 at `bin 8388608`, to maintain vault ranges and minimize the impacts of slippage.

### Balanced Stable Strategy

Balanced strategies utilize a gaussian type distribution and provide liquidity across a larger range. Over a relatively larger range, the gaussian-like distribution of liquidity results in higher capital utility.

During more volatile market conditions this strategy is expected to outperform a concentrated option.

### Concentrated Stable Strategy

Concentrated strategies utilize an even type of distribution and provide liquidity across a tightly concentrated range. Over a relatively tight range, the even-like distribution of liquidity results in higher capital utility.

During more stable market conditions this strategy is expected to outperform a balanced option.

### Applicable Pool Types

Stable-stable asset pairs closely trading in parity

*Example Pools: USDC.e-USDC, USDT-USDC, USDT.e-USDT*

### 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 `bin 8388608` is 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.