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70 changes: 67 additions & 3 deletions apps/frontend-v3/app/(marketing)/risks/page.tsx
Original file line number Diff line number Diff line change
Expand Up @@ -33,8 +33,6 @@ export default function Privacy() {
<nav className="nav">
<h2>Contents</h2>

<h3>Liquidity Provider risks</h3>

<ul>
<li>
<Link href="risks#general" scroll>
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<li>
<Link href="risks#boosted-pools">Boosted Pools</Link>
</li>
<li>
<Link href="risks#stablesurge-hook">StableSurge Hook</Link>
</li>
<li>
<Link href="risks#concentrated-liquidity-pools">
Concentrated Liquidity Pools
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</FadeInOnView>
<FadeInOnView>
<div className="subsection">
<h2>Risks for Liquidity Providers (LPs)</h2>
<h3 className="anchor" id="general">
General risks
</h3>
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</div>
</FadeInOnView>

<FadeInOnView>
<div className="subsection">
<h4 className="anchor" id="stablesurge-hook">
StableSurge Hook
</h4>
<p>
If a pool is pushed beyond its threshold balance, a surge is initiated,
resulting in an increasing tax on sellers who negatively impact the peg of the
asset by continuing to push the pool out of balance. On the other hand, the
liquidity providers who maintain the risk of being in the pool, earn an
increased fee, resulting in higher returns on their position during times of
volatility.
</p>
<p>
The directional fee nature of the StableSurge hooks only charges the increased
fee on those sellers who are driving the peg further from equilibrium, while
those who are buying the underperforming asset are only charged the base fee.
This aligns the incentives of the liquidity providers and the project entity,
which inherently wants its token to stay as close to the peg as possible.
</p>
<p>
Stable Surge hooks introduces dynamic swap fees designed to protect peg, but may
also impact the risk profile of a pool. Please also refer to{' '}
<Link href="risks#hooks-risk">
<span>Hooks</span>
</Link>{' '}
risk section and other{' '}
<Link href="risks#general">
<span>General</span>
</Link>{' '}
risks.
</p>
<ul>
<li>
Dynamic fee volatility: these fees are not fixed and can change significantly
based on several factors, including but not limited to: pool imbalances,
market volatility, and the specific configuration of the StableSurge
parameters. You may encounter unexpectedly high fees, especially during
periods of market stress or when the pool is significantly off-target. While
the hook can lead to lower fees, there is no guarantee of consistency, and
fees can rapidly increase.
</li>
<li>
Parameter Sensitivity: The performance of the StableSurge hook is highly
dependent on the correct configuration of its parameters. Incorrectly
configured parameters could lead to unintended consequences, such as
excessively high fees, ineffective rebalancing, or even instability in the
pool. Changes to these parameters can also significantly alter the pool&apos;s
behavior.
</li>
<li>
Rate provider risk: inaccurate or manipulated oracle data could lead to
unexpected fee adjustments and potential losses. Rate provider failures or
manipulation are inherent risks in decentralized finance. Learn more about
rate provider and oracle risks in the{' '}
<Link href="risks#composable-pools">
<span>Composable Stable Pools</span>
</Link>{' '}
risk section.
</li>
</ul>
</div>
</FadeInOnView>

<FadeInOnView>
<div className="subsection">
<h4 className="anchor" id="concentrated-liquidity-pools">
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