# Introduction

Quantlytica is an AI-powered multi-chain liquidity distribution protocol that streamlines finding and building the best liquidity strategies. Leveraging machine learning and statistical models, Quantlytica first conducts horizontal comparisons of returns, liquidity risks, and safety across all DeFi projects. It then provides multiple automated strategies tailored to various user needs. Our Fund SDK toolkits further lower the barriers to Web3, making DeFi strategy building and testing fast, easy, and accessible to everyone.

We help Web3 users who prefer low risk or lack product differentiation skills in DeFi to reduce the uncertainty and opportunity cost of choosing projects. Through simple aggregated operations, we automate participation in the quick evolving of Web3 ecosystem.

The protocol is currently maintained by Quantlytica team and Capital partners. Gradually it will be managed by more various independent developers and governed by QTLX holders. You can find brief descriptions of Quantlytica's core products, the governance process, and links to active communication channels in below links:

**Website:** [**https://www.quantlytica.com/**](https://www.quantlytica.com/)

**Testnet:** [**https://test-dapp.quantlytica.com/**](https://test-dapp.quantlytica.com/)

**Mainnet:** [**https://dapp.quantlytica.com/**](https://dapp.quantlytica.com/)

**Twitter:** [**https://twitter.com/quantlytica**](https://twitter.com/quantlytica)

**Telegram:** [**https://t.me/quantlytica**](https://t.me/quantlytica)

**TaskOn Community Page:** [**https://community.quantlytica.com/**](https://community.quantlytica.com/)


# Understanding Quantlytica

<figure><img src="/files/5T6gZEU6jUnzGVNUEXwn" alt=""><figcaption></figcaption></figure>

Quantlytica stands at the forefront of decentralized finance (DeFi) as an Liquidity Distribution Protocol, integrating several reliable DeFi protocols across multiple chains. Our stringent selection process ensures that each integration meets high standards of security, performance, and credibility, providing secure and lucrative yield opportunities.

Leveraging advanced artificial intelligence (LSTM Networks), Quantlytica performs thorough due diligence on all potential integrations. Our AI systems continuously analyze each asset's financial health and reliability, adding an extra layer of security and maintaining the integrity of our investment offerings.

Designed with the user in mind, Quantlytica features a streamlined interface that consolidates various protocols into one easily accessible location. This simplifies the user experience, allowing for engagement with multiple investment opportunities through a single click.

Our platform excels in AI-driven liquidity automation, analyzing extensive data sets to tailor capital strategies to individual user needs. The result is optimal project portfolios and capital allocation strategies designed to maximize returns. Additionally, our automated capital allocation manages investments efficiently, freeing users from manual intervention.

For users seeking deeper strategic insights, Quantlytica provides comprehensive documentation on advanced strategies such as Smart DCA and various hedge fund techniques. These resources offer detailed analyses and guidance, enabling users to make well-informed decisions and optimize their investment outcomes.

Moreover, Quantlytica is more than a platform for passive following. We will gradually release our fund SDK and Risk Management protocol to empower protocols, builders, and fund managers to build, scale, and monetize on Quantlytica’s infrastructure. These strategies can range from quantitative trading, index investment, TVL acceleration, and router optimization to customized allocators and DeFi-native combinations. Strategy creators can leverage Quantlytica's building blocks without financial or coding expertise, benefiting from:

* Various DeFi protocol integrations (e.g., DEX, lending, derivatives, yield farming)
* Fee rules for participants (e.g., management, entrance fees)
* Backtesting & Simulation framework
* Advanced risk management tools designed like Murex (<https://www.murex.com/en>).

With these features, Quantlytica serve as your liquidity gateway, designed to bridges the gap between protocols and users, making DeFi participation fast, easy, and accessible for everyone.


# Liquidity Automation

Quantlytica Liquidity Automation is our flagship product designed to automatically generate yield and alpha by leveraging market opportunities. This service benefits users by minimizing research time, automating investments, and dynamically optimizing yields. Users do not need deep knowledge of market, underlying protocols or DeFi, making it ideal for passive investing.

In essence, Quantlytica's Liquidity Automation simplifies wealth generation through strategies such as Smart DCA, AI Grid Trading, and yield farming. Our AI-driven approach removes the need for human decision-making, making sophisticated DeFi investing accessible to everyone.

Looking ahead, we plan to onboard strategies created by traditional fund managers, DeFi builders, and project developers. These strategies will range from yield maximization and TVL acceleration to bridge optimization.

In the following pages, we will delve deeper into the current and future investment strategies that Quantlytica plans to implement.


# Strategy Vaults

The Quantlytica vault system is a decentralized suite of liquidity distribution products, thoughtfully designed to meet a broad spectrum of needs. Our platform offers a flexible and customizable infrastructure that enables anyone to efficiently and securely generate yields or manage capital flows. Whether you're a technical expert fine-tuning for gas fee optimization, a yield farmer in search of dependable strategies, or a crypto enthusiast aiming to accrue airdrop points across multiple protocols, our vaults are designed to support your objectives.

While some vaults require a subscription to participate—reserving exclusive rights for our members and token holders—most are accessible to the general public.&#x20;

Each of our strategy vaults boasts unique features and diverse options, catering to various investor preferences and strategies. Below, you'll find a summary of each pool and vault. This information is routinely updated and shared with our users to maintain transparency and keep everyone informed about the latest developments in our vault offerings:

{% content-ref url="/pages/BFlpcnr0wAuSSskVQvAk" %}
[Orderly Perp BTC Liquidity Provider powered by Elixir Network](/products/liquidity-automation/strategy-vaults/orderly-perp-btc-liquidity-provider-powered-by-elixir-network)
{% endcontent-ref %}

{% content-ref url="/pages/P3yiPomiFXbNOW9pvYpf" %}
[Orderly Perp ETH Liquidity Provider powered by Elixir Network](/products/liquidity-automation/strategy-vaults/orderly-perp-eth-liquidity-provider-powered-by-elixir-network)
{% endcontent-ref %}


# Orderly Perp BTC Liquidity Provider powered by Elixir Network

## Description

This vault purely provides liquidity to Elixir vault on Orderly Network without any USDC profit and loss. The LP position is earning Quantlytica Points, Orderly Deeds and Elixir Potions.

## Overview

<table><thead><tr><th width="254"></th><th>Details</th></tr></thead><tbody><tr><td>LP Token Name</td><td>Quantlytica Orderly Perp BTC LP</td></tr><tr><td>LP Token Symbol</td><td>Q-ORDERLY1</td></tr><tr><td>Strategy Type</td><td>Point Hunter</td></tr><tr><td>Creator</td><td>Quantlytica</td></tr><tr><td>Chain</td><td>Arbitrum</td></tr><tr><td>Subscription Required</td><td>No</td></tr><tr><td>Accepted Asset</td><td>USDC</td></tr><tr><td>Yield Source</td><td>QTLX Points, <a href="https://docs.elixir.xyz/decentralized-exchanges/exchange-rewards">Orderly Deeds</a>, <a href="https://app.orderly.network/elixir">Elixir Potions</a>, <a href="https://d-app.coraldex.finance/pointHub">$CORL</a></td></tr><tr><td>Total Deposit Cap</td><td>Unlimited</td></tr><tr><td>Max Deposit per User</td><td>Unlimited</td></tr><tr><td>Management Fee</td><td>0%</td></tr><tr><td>Performance Fee</td><td>0%</td></tr><tr><td>Deposit Fee</td><td>0.000055 ETH by Elixir</td></tr><tr><td>Withdraw Fee</td><td>0.000055 ETH + 1 USDC by Elixir</td></tr><tr><td>Lock-Up Policy</td><td>N/A</td></tr><tr><td><a href="/pages/hLFMK9BU7chIkZpybpe9#duo-token-design">Flyer Points/Tokens</a> per day</td><td>1 per 100 USDC</td></tr></tbody></table>

## **Season 2 QTLX Point Mining Speed Table**

<table><thead><tr><th width="250"></th><th>Daily Mining Speed</th></tr></thead><tbody><tr><td>Epoch 1: Aug 1 - Aug 5</td><td>5000</td></tr><tr><td>Epoch 2: Aug 6 - Aug 10</td><td>TBA</td></tr></tbody></table>

Please refer to [Season 2](/reward-program/season-2#quantlytica-earn-season-2-guidelines) for more detailed explanations.


# Orderly Perp ETH Liquidity Provider powered by Elixir Network

## Description

This vault purely provides liquidity to Elixir vault on Orderly Network without any USDC profit and loss. The LP position is earning Quantlytica Points, Orderly Deeds and Elixir Potions.

## Overview

<table><thead><tr><th width="254"></th><th>Details</th></tr></thead><tbody><tr><td>LP Token Name</td><td>Quantlytica Orderly Perp ETH LP</td></tr><tr><td>LP Token Symbol</td><td>Q-ORDERLY2</td></tr><tr><td>Strategy Type</td><td>Point Hunter</td></tr><tr><td>Creator</td><td>Quantlytica</td></tr><tr><td>Chain</td><td>Arbitrum</td></tr><tr><td>Subscription Required</td><td>No</td></tr><tr><td>Accepted Asset</td><td>USDC</td></tr><tr><td>Yield Source</td><td>QTLX Points, <a href="https://docs.elixir.xyz/decentralized-exchanges/exchange-rewards">Orderly Deeds</a>, <a href="https://app.orderly.network/elixir">Elixir Potions</a>, <a href="https://d-app.coraldex.finance/pointHub">$CORL</a></td></tr><tr><td>Total Deposit Cap</td><td>Unlimited</td></tr><tr><td>Max Deposit per User</td><td>Unlimited</td></tr><tr><td>Management Fee</td><td>0%</td></tr><tr><td>Performance Fee</td><td>0%</td></tr><tr><td>Deposit Fee</td><td>0.000055 ETH by Elixir</td></tr><tr><td>Withdraw Fee</td><td>0.000055 ETH + 1 USDC by Elixir</td></tr><tr><td>Lock-Up Policy</td><td>N/A</td></tr><tr><td><a href="/pages/hLFMK9BU7chIkZpybpe9#duo-token-design">Flyer Points/Tokens</a> per day</td><td>1 per 100 USDC</td></tr></tbody></table>

## **Season 2 QTLX Point Mining Speed Table**

<table><thead><tr><th width="250"></th><th>Daily Mining Speed</th></tr></thead><tbody><tr><td>Epoch 1: Aug 1 - Aug 5</td><td>5000</td></tr><tr><td>Epoch 2: Aug 6 - Aug 10</td><td>5000</td></tr></tbody></table>

Please refer to [Season 2](/reward-program/season-2#quantlytica-earn-season-2-guidelines) for more detailed explanations.


# Singularity ETH Compliant Staking

## Description

This vault simplifies compliant staking process on Singularity without any ETH profit and loss. The LP position is earning Quantlytica Points and Singularity Points.

Typically, engaging in Singularity’s compliant staking requires undergoing KYB/KYC procedures and converting ETH/USDT/USDC into sgETH/sgUSDT/sgUSDC to start earning points. Such processes are often accessible only to institutions and major investors.

However, as a business partner of Singularity, Quantlytica has completed the necessary KYB checks and developed this strategy vault to automate the entire staking process for our users. Now, you can bypass the complex steps traditionally required for staking. Simply deposit your assets into the vault, and start earning double Singularity points towards future tokens, as well as a share of daily QTLX Points.

**More about Singularity:** <https://singularityzk.gitbook.io/singularity>

## Overview

<table><thead><tr><th width="254"></th><th>Details</th></tr></thead><tbody><tr><td>LP Token Name</td><td>Quantlytica Singularity ETH LP</td></tr><tr><td>LP Token Symbol</td><td>Q-SINGULARITY1</td></tr><tr><td>Strategy Type</td><td>Point Hunter</td></tr><tr><td>Creator</td><td>Quantlytica</td></tr><tr><td>Chain</td><td>Arbitrum</td></tr><tr><td>Subscription Required</td><td>No</td></tr><tr><td>Accepted Asset</td><td>ETH</td></tr><tr><td>Yield Source</td><td>QTLX Points, <a href="https://www.thesingularity.network/compliant-staking?ref=blog.zk.me">Singularity Points</a></td></tr><tr><td>Total Deposit Cap</td><td>Unlimited</td></tr><tr><td>Max Deposit per User</td><td>Unlimited</td></tr><tr><td>Management Fee</td><td>0%</td></tr><tr><td>Performance Fee</td><td>0%</td></tr><tr><td>Deposit Fee</td><td>0</td></tr><tr><td>Withdraw Fee</td><td>0.075% by Singularity &#x26; Quantlytica</td></tr><tr><td>Lock-Up Policy</td><td>Yes, withdrawable every Sunday </td></tr><tr><td><a href="/pages/hLFMK9BU7chIkZpybpe9#duo-token-design">Flyer Points/Tokens</a> per day</td><td>40 per 1 ETH</td></tr></tbody></table>

## What is Lock-Up policy?

To maximize user yields and enhance capital safety, Quantlytica implements lock-up periods in some of our more complex strategies. This approach minimizes the impact of frequent capital movements on the overall strategy effectiveness.

For example, in our Singularity ETH Compliant Staking, withdrawals are structured to occur weekly. Users can withdraw their funds every Sunday from 00:00 to 24:00 UTC+8.

## **Season 2 QTLX Point Mining Speed Table**

<table><thead><tr><th width="250"></th><th>Daily Mining Speed</th></tr></thead><tbody><tr><td>Epoch 1: Aug 1 - Aug 8</td><td>N/A</td></tr><tr><td>Epoch 2: Aug 9 - </td><td>10000</td></tr></tbody></table>

Please refer to [Season 2](/reward-program/season-2#quantlytica-earn-season-2-guidelines) for more detailed explanations.


# Floating Rate Note

## Description

This vault distributes liquidity to multiple vaults selected by AI with principle protected. The LP position is earning USDT and Quantlytica Points.

## Overview

<table><thead><tr><th width="254"></th><th>Details</th></tr></thead><tbody><tr><td>LP Token Name</td><td>Quantlytica Floating Rate Note</td></tr><tr><td>LP Token Symbol</td><td>Q-NOTE1</td></tr><tr><td>Strategy Type</td><td>Yield Farming</td></tr><tr><td>Creator</td><td>Quantlytica</td></tr><tr><td>Chain</td><td>Arbitrum</td></tr><tr><td>Subscription Required</td><td>Yes</td></tr><tr><td>Accepted Asset</td><td>USDT</td></tr><tr><td>Yield Source</td><td>USDT, QTLX Points</td></tr><tr><td>Total Deposit Cap</td><td>1,000,000</td></tr><tr><td>Max Deposit per User</td><td>Unlimited</td></tr><tr><td>Management Fee</td><td>0%</td></tr><tr><td>Performance Fee</td><td>0%</td></tr><tr><td>Deposit Fee</td><td>0</td></tr><tr><td>Withdraw Fee</td><td>0</td></tr><tr><td>Lock-Up Policy</td><td>N/A</td></tr><tr><td><a href="/pages/hLFMK9BU7chIkZpybpe9#duo-token-design">Flyer Points/Tokens</a> per day</td><td>1 per 100 USDC</td></tr></tbody></table>

## **Season 2 QTLX Point Mining Speed Table**

<table><thead><tr><th width="250"></th><th>Daily Mining Speed</th></tr></thead><tbody><tr><td>Epoch 1: Aug 1 - Aug 5</td><td>5000</td></tr><tr><td>Epoch 2: Aug 6 - Aug 10</td><td>TBA</td></tr></tbody></table>

Please refer to [Season 2](/reward-program/season-2#quantlytica-earn-season-2-guidelines) for more detailed explanations.


# stBIBI Staking

## Description

This vault exclusively accepts stBIBI (staked $BIBI supported by Quantlytica) without any profit and loss. The LP position is earning Quantlytica Points.

BIBI (BNB) Contract Address: 0xFE8bF5B8F5e4eb5f9BC2be16303f7dAB8CF56aA8

stBIBI (ARB) Contract Address: 0x6fafa2daf47c12ae0f4e82aa29f18deea4df40ac

## Overview

<table><thead><tr><th width="254"></th><th>Details</th></tr></thead><tbody><tr><td>LP Token Name</td><td>Quantlytica stBIBI Pool</td></tr><tr><td>LP Token Symbol</td><td>Q-STBIBI</td></tr><tr><td>Strategy Type</td><td>Point Hunter</td></tr><tr><td>Creator</td><td>Quantlytica</td></tr><tr><td>Chain</td><td>Arbitrum</td></tr><tr><td>Subscription Required</td><td>No</td></tr><tr><td>Accepted Asset</td><td>stBIBI</td></tr><tr><td>Yield Source</td><td>QTLX Points</td></tr><tr><td>Total Deposit Cap</td><td>Unlimited</td></tr><tr><td>Max Deposit per User</td><td>Unlimited</td></tr><tr><td>Management Fee</td><td>0%</td></tr><tr><td>Performance Fee</td><td>0%</td></tr><tr><td>Deposit Fee</td><td>0</td></tr><tr><td>Withdraw Fee</td><td>0</td></tr><tr><td>Lock-Up Policy</td><td>N/A</td></tr><tr><td><a href="/pages/hLFMK9BU7chIkZpybpe9#duo-token-design">Flyer Points/Tokens</a> per day</td><td>1 per 100,000,000,000 stBIBI</td></tr></tbody></table>

## **Season 2 QTLX Point Mining Speed Table**

<table><thead><tr><th width="250"></th><th>Daily Mining Speed</th></tr></thead><tbody><tr><td>Aug 22 - </td><td>8000</td></tr></tbody></table>

Please refer to [Season 2](/reward-program/season-2#quantlytica-earn-season-2-guidelines) for more detailed explanations.


# How to get stBIBI

The BIBI token is presently active only on the Binance Smart Chain. To extend benefits to BIBI holders and to encourage their participation in our Earn Season 2, Quantlytica has established official cross-chain support that enables the use of BIBI tokens on Arbitrum. When users bridge their BIBI tokens from the Binance Smart Chain, they will receive stBIBI on Arbitrum.

Please note: This stBIBI is not the original BIBI token but a mirrored version supported by Quantlytica, designed specifically for cross-chain functionality.

Contract Address:

* BIBI (BNB): 0xFE8bF5B8F5e4eb5f9BC2be16303f7dAB8CF56aA8
* stBIBI (ARB): 0x6fafa2daf47c12ae0f4e82aa29f18deea4df40ac

**Here's a step-by-step guide on how users can effectively bridge BIBI -> stBIBI:**

Step 1. Access our bridge page: <https://bridge.quantlytica.com/bridge>

Step 2. Select from "BSC" to "Arbitrum"

Step 3. Select BIBI token

Step 4. Enter bridge amount

Step 4. Click "Deposit"

<figure><img src="/files/TwBLeJqyBoSFyDBPRK1j" alt=""><figcaption></figcaption></figure>

Step 5. Switch chain and claim your stBIBI token on Arbitrum

<figure><img src="/files/gP5zrYtlTIMejILwJVn8" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/ykNsGcFYvTRDhFU75C81" alt=""><figcaption></figcaption></figure>

Here's a step-by-step guide on how users can effectively perform stBIBI -> BIBI:

Step 1. Access our bridge page

Step 2. Select from "Arbitrum" to "BSC"

Step 3. Select stBIBI token

Step 4. Click "Deposit"

<figure><img src="/files/8kYvzJ86Rdxedt4Mfebt" alt=""><figcaption></figcaption></figure>

Step 5. Switch chain and claim your BIBI token on BSC

<figure><img src="/files/EbI89mYhowBNp2J3Jr56" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/Bldn6wHIZlzmoQkzJYIX" alt=""><figcaption></figcaption></figure>


# Grid 3X Leverage 12H Future Trading

Coming Soon


# Dollar-Cost Average

Currently Dollar-Cost Average is only on testnet

## Introduction

Dollar Cost Averaging (DCA) investment is a strategy designed to reduce the impact of volatility on large purchases of financial assets such as stocks. By dividing the total amount to be invested across periodic purchases of a target asset, investors aim to reduce the risk of investing a large amount in a single transaction. This approach allows for buying more shares when prices are low and fewer shares when prices are high, potentially lowering the average cost per share over time. DCA is particularly favored for its simplicity and its suitability for investors looking to build their portfolio gradually without the need to time the market.

## Investment Object

**Minimizes Market Timing Risk**: Spreads investments over time to reduce the risk associated with attempting to time the market.

**Simplifies Investing**: Offers a straightforward strategy for investors of all levels, with minimal need for constant decision-making or market watching.

**Mitigates Volatility**: Averages out the effects of market ups and downs, potentially lowering the average purchase cost over time.

**Consistent Investment Approach**: Promotes disciplined investing through regular contributions, irrespective of current market conditions.

## Key features

**Flexible Investment Options**:

* **Single Asset Investment**: Allows investing in individual assets such as BTC, ETH.
* **Customized Index**: Enables creation of personalized investment portfolios with a desired mix of tokens.
* **Quantlytica Index**: Offers expertly curated indexes designed by the Quantlytica research team for various investment scenarios.

**Long-term Growth Focus**: Ideal for investors with a long-term perspective, aiming to build wealth gradually and steadily.

## Getting started with Quantlytica DCA

To initiate your DCA (Dollar Cost Averaging) investment with Quantlytica, you will need to configure the following parameters:

* **Chain:** Select the blockchain where you intend to conduct your DCA investment (e.g., Bitlayer, Polygon, BNB).
* **Trading Pair**: Choose the type of tokens you plan to invest in:
  * **Single Token**: Options include ETH, WBTC, SOL, etc.
  * **Customized Index**: A basket of user-defined tokens (detailed explanation in the [Quantlytica Index](/products/quantlytica-index) section).
  * **Quantlytica Index**: Our predefined set of tokens (detailed explanation in the [Quantlytica Index](/products/quantlytica-index) section).
* **Investment Amount:** Specify the amount in USDT that you wish to invest each time.
* **DCA Occurrence:** Set the frequency of your investments (e.g., Monthly, Bi-weekly, Daily).
* **Rebalance**: Applicable only to index investments (detailed explanation in the [Quantlytica Index](/products/quantlytica-index) section).

Quantlytica does not require users to transfer USDT to a vault or smart contract in advance. Instead, after you grant approval, Quantlytica will only deduct the investment amount from your account at the scheduled occurrence and trading times.

{% hint style="info" %}
Please ensure there is sufficient USDT in your account at the time of the transaction. If the account balance is insufficient, the scheduled DCA transaction will not be executed and will be considered a failed attempt.
{% endhint %}


# Smart Dollar-Cost Average

Currently Dollar-Cost Average is only on testnet

## Introduction

In Quantlytica, our advanced AI-powered strategy, dubbed Smart DCA, revolutionizes the traditional Dollar Cost Averaging strategy by incorporating market-sensitive buying and selling decisions. Unlike standard DCA, where the investment amount is fixed, Smart DCA dynamically adjusts the purchase volume of tokens based on prevailing market conditions. Moreover, it introduces the strategic capability to sell a portion of tokens when prices peak. This intelligent approach aims to capitalize on the principle of buying low and selling high, steering towards achieving a negative cost over the long term. Smart DCA is designed for investors seeking to optimize their investment outcomes by leveraging AI-driven insights to navigate market volatility efficiently.

## Investment Object

**AI-Enhanced Decision Making**: Leverages advanced AI to dynamically adjust buy and sell strategies based on real-time market conditions, aiming for optimized returns.

**Strategic Market Timing**: Smart DCA aims to outperform traditional investment strategies by intelligently determining the most advantageous times to buy low and sell high, targeting a negative cost over time.

**Passive Return Potential**: Simplifies the process of earning returns, allowing users to start with a single click and minimal ongoing management.

## Key features

**Volatility Management**: Utilizes AI technology to better navigate market volatility, potentially offering more stability and improved protection against market downturns.

**User-Friendly**: Designed for ease of use, requiring minimal input from the investor after initial setup, making sophisticated investing accessible to all.

**Customizable and Flexible**: Provides options for both targeted single asset investments and diversified portfolio strategies through the Quantlytica indexes, catering to a range of investor preferences and risk tolerances.

**Selective Asset Investment**:

* **Single Asset Focus**: Available for a select list of backtested tokens (such as BTC, ETH, BNB), ensuring reliability and performance.
* **Quantlytica Index**: Users can invest in specially curated indexes, designed for various market scenarios, leveraging the expertise of the Quantlytica research team.

## Getting started with Smart DCA:

To initiate your Smart DCA investment with Quantlytica, you will need to configure the following parameters:

* **Chain:** Select the blockchain where you intend to conduct your Smart DCA investment (e.g., Bitlayer, Polygon, BNB).
* **Asset Selection for Smart DCA**:
  * **Single Asset Investment**: Users can choose from a select list of tokens, currently including BTC, ETH, and BNB, which have been rigorously backtested to ensure optimal performance.
  * **Quantlytica Index**: Invest in expertly designed Quantlytica indexes tailored for various scenarios, allowing for diversified and strategic investment opportunities (detailed explanation in the [Quantlytica Index](/products/quantlytica-index) section).
* **Investment** Specify the base amount of USDT that you wish to buy and sell each time.
* **Execution and Management**:
  * Ensure your exchange or wallet account is adequately funded. The Smart DCA bot will autonomously execute buy and sell orders based on its sophisticated market analysis and your preferences, requiring minimal input from the user beyond initial setup.

This streamlined approach allows users to effortlessly engage in Smart DCA investing, leveraging Quantlytica's AI capabilities to navigate the complexities of the market and aim for a negative cost over time, all while maintaining a focus on selected high-performance assets and indexes.

{% hint style="info" %}
Please ensure there is sufficient USDT in your account at the time of the transaction. If the account balance is insufficient, the scheduled DCA transaction will not be executed and will be considered a failed attempt.
{% endhint %}

{% hint style="info" %}
Users must approve the underlying token (such as ETH, WBTC, BNB, etc.) even if they don't currently have any in their wallet. This is because Smart DCA, unlike normal DCA, may sell a portion of the underlying token when the market situation becomes overhyped.&#x20;
{% endhint %}


# AI Grid Trading (Coming Soon)

## Introduction

Quantlytica AI Grid Trading represents a cutting-edge approach to cryptocurrency trading, designed to optimize performance in sideways or fluctuating markets.

* **Periodic Market Analysis**: Every fixed period, such as every 12 hours, the AI Grid Trading captures comprehensive market data to stay abreast of the latest trends and movements.
* **Quantitative Factors Analysis**: Utilizing this data, the strategy conducts a detailed quantitative analysis of various factors, enabling a deep understanding of current market conditions.
* **AI-Powered Token Selection**: Leveraging sophisticated AI algorithms, the strategy evaluates and selects the most suitable token(s) that are likely to perform well in sideways markets, where price fluctuations are relatively small and occur within a defined range.
* **Grid Trading Strategy**: Once a token is selected, the AI Grid Trading implements a grid trading strategy. This involves placing a series of buy and sell orders at predefined intervals around a set price point, capturing profit from small price movements.

This innovative tool is designed for investors looking to capitalize on the volatility of the crypto market with minimal manual effort, offering a strategic and automated solution to navigate sideways market conditions effectively.

## Getting started with AI Grid Trading:

* **Select the Strategy**: Choose the AI Grid Trading from our Asset Management strategy marketplace tailored for sideways market trading.
* **Review Backtest Results**: Go through the backtest results to gain insights into the strategy's performance, understand the associated risks, and set realistic expectations for returns.
* **Setup Investment Parameters**:
  * Determine the investment amount you wish to allocate to the strategy's trading activities.
  * Decide on the level of leverage (if applicable) to enhance potential returns, keeping in mind the increased risk.
* **Quantlytica Management**: After setup, Quantlytica takes over, employing the AI Grid Trading to execute the strategy and manage trading activities based on the predefined parameters.

This streamlined process is designed to make sophisticated trading accessible to all users, allowing them to leverage advanced AI capabilities with minimal effort.

{% hint style="info" %}
We will provide detailed documentation once the AI Grid Trading strategy is fully implemented and live.
{% endhint %}


# Quantlytica Index

Currently Quantlytica Index is only on testnet

## Introduction

Through our adopted risk control strategies, our goal is to construct an index that embodies both robustness and accuracy, effectively reflecting the current state of the cryptocurrency market. In selecting components for the index, we utilized quantitative factors to pick the top cryptocurrencies featured in factors style from a whitelist, and we combined their price movements using an equal-weighting approach to ensure that each component contributes evenly to the index.

These risk control strategies not only help protect investors from unnecessary risks but also provide them with a reliable and valuable market indicator. We believe that through this approach, we can offer investors stable and trustworthy investment options in the dynamic and ever-changing cryptocurrency market. The uniqueness of this index lies in its integration of fundamental and quantitative factors, aiming to provide investors with a more comprehensive, dynamic, and competitive investment tool.

## Index construction risk management

1. **Preliminary Screening Criteria**
   * We will perform a preliminary screening of all cryptocurrencies listed on the Binance exchange.
   * To reduce the high risk associated with newly listed cryptocurrencies, our strategy involves excluding all cryptocurrencies that have been listed for less than 90 days.
   * This measure is based on an in-depth analysis of market data, aimed at reducing the excessive volatility brought about by the uncertainty of new cryptocurrencies and market speculation. Through this method, we can better ensure the stability of the index and provide a more mature and tested market reflection.
2. **Whitelist Mechanism**
   * We will establish a whitelist based on the trading pair data from most popular Cex and Dex.
   * Cryptocurrencies on the whitelist must have a stable transaction history on these major exchanges.
   * The purpose of this is to ensure that the selected cryptocurrencies not only perform well on one exchange but are also recognized for their market acceptance and liquidity across a broader spectrum.
   * We focus on those cryptocurrencies that have a high market value and are widely accepted within the crypto community. Through this approach, we can ensure that the index components accurately reflect the main and influential cryptocurrencies in the market.
3. **Balancing Reliability and Limitations**
   * In the process of establishing the whitelist, we recognize that this might lead to the exclusion of some cryptocurrencies with higher volatility but significant market capitalization (which may not be listed on Coinbase).
   * This selection helps us reduce the downside risk of the index, though we are aware that it could also limit the index’s upside potential.
   * We will balance these risks and potential rewards through continuous market monitoring and analysis. It is necessary to regularly review and update the whitelist to ensure the index continuously reflects the market conditions, including manual additions to the whitelist (e.g., BNB).

## Index construction mechanism

1. **Dataset Selection and Preprocessing**
   * When selecting the dataset for index modeling, we specifically used 1-hour perpetual contract data. The primary motivation for this decision is to align the model more closely with actual market fluctuations through finer time granularity, specifically hourly price data. This high-resolution data allows us to capture subtle price movement features more accurately, thereby increasing the model’s sensitivity to market behaviors. With this data selection, we aim to achieve more precise and reliable fitting results, leading to more meaningful analysis and conclusions in subsequent backtesting reports.
2. **Index Construction Factors**
   * In index modeling, we employed a unique and effective method by combining fundamental and quantitative factors to select index components. Specifically, the model prioritizes the top 10 cryptocurrencies by in-house factors style from a whitelist over a certain past period. This strategy's design aims to combine the robustness of fundamental aspects with the precision of quantitative factors to build a more stable and reliable index.
   * Choosing cryptocurrencies with the highest trading volumes as index components helps ensure the index’s representativeness and liquidity. Prioritizing trading volume allows the index to more accurately reflect actual capital flows and investment trends in the market. Through this joint selection based on quantitative factors and trading volume, the index components are likely to exhibit relative stability in volatile markets, enhancing the overall credibility and applicability of the index. This strategy of integrating fundamental and quantitative approaches provides a more comprehensive and dynamic perspective for index construction.
3. **Index Fitting Process**
   * During the index fitting phase, a selection is first made through quantitative factors to filter multiple cryptocurrencies. The purpose of this step is to pick assets that show relatively robust market performance, in order to build a more robust index. By analyzing quantitative factors, we are able to exclude cryptocurrencies that are highly volatile or exhibit unstable performance, thus enhancing the overall reliability of the index.
   * Subsequently, in the process of building the index, we adopted an equal weighting distribution strategy. The rise and fall of each cryptocurrency are included in the index calculation with equal weight, ensuring an equal contribution from each component. This weighting distribution not only simplifies the model but also ensures that the overall index better reflects the composite market movements. This method is advantageous as it effectively captures the overall market performance of multiple cryptocurrencies, providing a more comprehensive and balanced foundation for further analysis.
   * Finally, the components of the index are rebalanced and adjusted every 30 days. Since the index components we designed are relatively stable, significant adjustments are unlikely.


# Q3TV

## Introduction

The Quantlytica Top 3 Trading Volume (Q3TV) index offers an advanced approach to cryptocurrency investment, meticulously designed to serve both novice and experienced investors. Q3TV comprises the top three most traded volume pairs, selected through rigorous quantitative analysis to ensure robust market representation. Each component is equally weighted, providing balanced exposure to market dynamics.

Leveraging artificial intelligence, Q3TV excels in market analysis and performance monitoring, enhancing the accuracy of market insights and empowering the index to adapt and evolve. Rebalancing occurs at fixed intervals, aligning the index with current trends, ensuring reliability for portfolio diversification with high-volume trading pairs.

More than a mere measure of market activity, the Q3TV index serves as a gateway to informed investment decisions. It blends technological sophistication with market insight, offering a dynamic and meticulously crafted instrument. Investors gain access to a tool designed to navigate the complexities of cryptocurrency markets and capitalize on opportunities with precision.

## Current Components of Q3TV Index:

* BTC
* ETH
* Solana

## Rebalancing Frequency:

* Every 30 Days


# Fund SDK (Phase 2)

## **Introduction**

Quantlytica Fund SDK is designed to empower users to develop, manage, and monetize investment strategies seamlessly. Leveraging the latest advancements in AI, our SDK integrates sophisticated tools and a user-friendly interface, making it accessible for both seasoned investors and newcomers. This document outlines the key features and functionalities of the Quantlytica Fund SDK, providing a comprehensive guide to its usage.

## **Building Environment**

The Quantlytica Fund SDK offers a robust and versatile environment for strategy development:

* **Pre-built Templates:** Users can start with pre-built templates for various strategies, customizing them as needed to suit specific goals.
* **Build from Scratch:** For those with unique ideas, the platform allows the creation of strategies from the ground up.
* **Support for Coding and Non-Coding:** The SDK caters to both technical and non-technical users, providing intuitive tools for strategy creation.
* **AI Assistance:** Advanced AI models support users during the building phase, analyzing data and offering insights to optimize strategy development.

## **Backtest**

Backtesting is a crucial feature that enables users to validate their strategies before deployment:

* **Simulate Strategies:** Users can test their strategies under different market conditions to evaluate performance.
* **AI-Driven Recommendations:** Based on backtesting results, the AI provides recommendations to refine and improve strategies, ensuring they are robust and effective.

## **Fund Manager**

The Fund Manager feature allows strategy creators to share and monetize their strategies:

* **Public Strategies:** Builders can make their strategies public, attracting followers and expanding their reach.
* **Custom Fee Structures:** Creators can define specific fee structures, including management fees and performance-based rewards.
* **Incentives for DeFi Projects:** DeFi projects aiming to increase TVL or protocol usage must offer $QTLX tokens as rewards to incentivize participation.
* **Backtesting Criteria:** To ensure quality, strategies must pass predefined backtesting criteria set by the Quantlytica DAO before being made public.

## **Key Features:**

* **Customizable Strategy Building:** Offers flexibility to create and refine strategies using templates or starting from scratch.
* **AI Support:** Provides AI-driven insights during the building and testing phases to enhance strategy effectiveness.
* **Comprehensive Backtesting:** Allows users to evaluate strategies under various conditions and receive AI recommendations for improvement.
* **Public Strategy Management:** Enables strategy creators to share their work, attract followers, and monetize their strategies.
* **DAO-Approved Standards:** Ensures all public strategies meet high performance and reliability standards.
* **DeFi Project Incentives:** Encourages DeFi projects to reward users with $QTLX tokens, boosting participation and engagement.

The Quantlytica Fund SDK seamlessly integrates with existing workflows, offering a robust platform for strategy creation, testing, and deployment. Designed to cater to both novice and experienced users, our AI-driven tools and comprehensive support ensure that users can maximize their potential in the DeFi space.&#x20;

{% hint style="info" %}
Detailed documentation will be provided upon the SDK's release, guiding users through every step of the process, from initial setup to advanced strategy management.
{% endhint %}


# Risk Management (Phase 3)

Risk management in Quantlytica is a comprehensive process that ensures the safety and profitability of users' investments. It involves identifying, assessing, and prioritizing risks, followed by deploying strategies to mitigate these risks and maximize opportunities. Here’s how it works:

<figure><img src="/files/CLxAnGdsRGIjgNjepo7R" alt=""><figcaption></figcaption></figure>

## **Key Features**

1. **Support for In-House Data Feed and Custom Data Training**
   * **Integration of Data Feeds**: Users can integrate their own data feeds, which allows for the creation of personalized data models tailored to specific market conditions and needs.
   * **Custom Data Training**: This feature ensures that risk management strategies are aligned with the unique requirements of each user, providing a bespoke approach to handling risk.
2. **Customizable Risk Parameters**
   * **Flexible Risk Management**: Users can define and adjust risk parameters based on their individual investment strategies and risk tolerance. This flexibility allows for a personalized risk management approach.
   * **Dynamic Adjustments**: These parameters can be modified as market conditions change, ensuring that risk management remains effective and responsive.
3. **AI-Powered Risk Monitoring and Simulation**
   * **Continuous Monitoring**: Advanced AI algorithms continuously monitor risk factors, providing real-time insights into potential risks.
   * **Real-Time Simulations**: Users can run simulations to see the potential impact of various risk scenarios. This helps in anticipating and mitigating risks effectively.
   * **Data-Driven Insights**: The AI-driven approach enhances the accuracy of market insights, aiding in better decision-making.
4. **Comprehensive On-Chain and Off-Chain Support**
   * **Holistic Risk Management**: The platform supports risk management across various activities, including investments, yield farming, TVL acceleration, and on-the-fly automation.
   * **Unified Approach**: This ensures that both on-chain and off-chain crypto activities are covered, providing a seamless risk management experience.
5. **Real-Time Simulation**
   * **Impact Visualization**: Users can test and visualize the impact of different risk scenarios in real-time, helping them make informed decisions.
   * **Mitigation Strategies**: The simulations provide insights into potential outcomes, allowing users to develop effective mitigation strategies.
6. **SDK & API Documentation**
   * **Comprehensive Guides**: Quantlytica will provide thorough documentation to help users implement and optimize their risk management strategies using the SDK.
   * **Ease of Integration**: We will also ensure that the integration process is smooth and the risk management could be efficiently on every users' customized capital flow.

By leveraging these features, Quantlytica ensures that users can manage their crypto investments with confidence. The platform's robust risk management framework, inspired by Murex's design and powered by AI, provides a secure and efficient way to handle the uncertainties of the cryptocurrency market.

{% hint style="info" %}
Detailed documentation will be provided upon the release of the risk management SDK to help users fully utilize these features.
{% endhint %}


# Fee Structure

At Quantlytica, we streamline your crypto journey with a subscription-based system. By unlocking subscriptions with USDT (additional payment options to be introduced soon), users gain access to our comprehensive suite of services, including Asset Management, Fund SDK, and Risk Management.

We employ a unique "Asset Management" style fee structure, offering a pay-as-you-go model that minimizes costs and reduces idle funds. This ensures users only pay for the services they utilize, aligning expenses with their specific needs.

### Here are the Fee Structure of different service:

* **Liquidity Automation:** Subscription Fee
* **Fund SDK:** Subscription Fee for base usage + Additional Usage Request Fee
* **Risk Management:** Subscription Fee for base usage + Additional Usage Request Fee

We are currently finalizing our fee structure based on market research and community feedback from our early users. Our goal is to provide a user-friendly fee structure that is affordable and approachable for both Web2 and Web3 users once we official live.


# Season 1 (Completed)

<figure><img src="/files/d5wX4HjNWCCNqJhlq2MA" alt=""><figcaption></figcaption></figure>

Welcome to Quantlytica Earn Season 1, a unique airdrop event designed to reward our community for active participation. This event will run from May 27th and includes both Testnet and Mainnet activities. Participants can earn Operation EXP on the Testnet and boost their rewards by staking assets on the Mainnet. The total reward pool is 1,000,000 $QTLX and 100% $BTR Airdrops for season 1!

You can now check your $QTLX allocation on our website: <https://www.quantlytica.com/>

About $BTR: <https://medium.com/@Bitlayer/bitlayer-provides-20m-airdrop-for-dapp-leaderboard-competition-rewarding-ecosystem-projects-and-87ed3dc76b94>

## Event Rules

### Event Structure

* **Testnet (Polygon and Bitlayer Testnet)**
  * Complete daily tasks to earn Operation Points (Operation EXP).
  * Invite others to join and earn additional Referral EXP.
  * <https://test-dapp.quantlytica.com/points>
* **Mainnet (Bitlayer Mainnet)**
  * Stake USDT, BTC, or ETH to earn Quantlytica EXP Booster NFTs.
  * The earlier you stake, the more NFTs you earn.
  * Staking on Mainnet is withdrawable once the airdrop event ends.
  * Quantlytica will collaborate with more projects and launch additional staking pools.
  * <https://dapp.quantlytica.com/stake>

### Task EXP on Testnet

* **Daily Tasks:** Earn Task EXP by completing daily tasks on the Polygon and Bitlayer Testnets.

### Boost Multiplier on Mainnet

* **Staking Rewards:**

  * To simplify the process and help users become familiar with fund participation, you will need to stake in shares:
    * 50 USDT = 1 share
    * 0.0005 BTC = 1 share
    * 0.015 ETH = 1 share
    * 150,000 stCBD = 1 share
  * The staked principal will be 100% withdrawable once the earn season ends.
  * Each staking pool will be allocated with amount of $QTLX among its participants. This amount will be claimable after the Token Generation Event (TGE).
    * BTC Pool: 500% APY of $QTLX
    * ETH Pool: 500% APY of $QTLX
    * stCBD Pool: sharing 40,000 $QTLX + 25,000,000 $CBD
  * Stake USDT, BTC, or ETH to earn Quantlytica EXP Booster NFTs. The earlier you stake, the more NFTs you earn:

  <table><thead><tr><th width="298">Dates</th><th>NFT per share</th></tr></thead><tbody><tr><td>May 27 - 31</td><td>6</td></tr><tr><td>June 1 - 5</td><td>5</td></tr><tr><td>June 6 - 10</td><td>4</td></tr><tr><td>June 11 - 15</td><td>3</td></tr><tr><td>June 16 - 20</td><td>2</td></tr><tr><td>June 21 - 30</td><td>1</td></tr></tbody></table>
* **Staking EXP:** Stake a minimum of 1000 USDT, 0.01 BTC, 0.3 ETH or 7,500,000 stCBD to earn an additional 500 Staking EXP. The maximum Staking EXP each user can earn is 1500.

### Earn Season Referral Program

Earn an additional 30% of your invitee's Task EXP as Referral EXP.

* **Address Base:** The invitation relationship is based on the EVM address.
* **Universal:** The invitation relationship is universal. No matter where your invitee completes tasks, as long as they use the same EVM address, you will receive Referral EXP.
* **Exclusive to Task EXP:** You will only earn Referral EXP when your invitees gather Task EXP. There is no rebate from your invitees' referrals or staking activities.
* **Permanent Relationship:** Your invitation relationship will carry over to our official referral program in the future. If you wish to terminate or edit this relationship, you will need to raise a change request.

<figure><img src="/files/xgRKfhuREjrXBJaJXVs8" alt=""><figcaption></figcaption></figure>

### NFT Utilization and Snapshot

Users can mint their earned NFTs to participate in the Bitlayer ecosystem. Remember to keep these NFTs in your wallet on the snapshot date for the final EXP calculation.

### **Final Airdrop Points Calculation**

$$
(Task EXP+Referral EXP+Staking EXP)×(1+log(1+Unminted NFT amount+NFT amount in the wallet))
$$

## Final Airdrop Calculation and Claim

The final $QTLX & $BTR airdrop amount for each participant will be based on their accumulated airdrop points. Each participant's share will be calculated relative to the total airdrop points accumulated by all participants. You can now check your $QTLX allocation on our website: <https://www.quantlytica.com/>

Details regarding the specific claim date and the rules for the airdrop will be announced closer to the Token Generation Event (TGE). Participants are encouraged to stay updated through our official channels for timely information on how and when to claim their $QTLX.

## Monitoring and Compliance

The Quantlytica team will actively monitor for any wash trading or fraudulent activities. Participants found violating the terms will be disqualified from receiving rewards.

## Terms and Conditions

The Quantlytica team reserves the right to modify, amend, or update the event rules and regulations at any time without prior notice, ensuring the program's integrity and fairness.


# Season 2

<figure><img src="/files/3h9vGgp3q2n5gxn5M7Da" alt=""><figcaption></figcaption></figure>

Welcome to Quantlytica Earn Season 2, an expansive airdrop event crafted to reward our community's active participation. Running from Aug 1st until our Targeted Token Generation Event (TGE) in September, this season promises even more opportunities to engage and earn.

During this period, participants can accumulate **QTLX Points** by engaging with our strategy vaults. Not only will you benefit from attractive Annual Percentage Yields (APYs), but you'll also hunt for additional airdrop points from collaborating projects.

## Quantlytica Earn Season 2 Guidelines

### Participation and Point Accumulation:

* **LP Tokens:** Users can deposit into various vaults across our platform to receive LP tokens. These tokens are crucial as they determine your eligibility and capacity to mine QTLX Points, acting as a direct measure of your participation.
* **Mining Speed:** QTLX Points are mined continuously, with distribution occurring every second based on your holdings of LP tokens. Each vault has a specific mining speed assigned; for example, if the mining speed is set to 1000, then LP 1 holders will share 1000 QTLX points per day, distributed proportionally every second among others.
* **Vault Specificity:** It’s important to note that the points mined from one specific vault are exclusive to the holders of that vault’s LP tokens (e.g., points from LP 1 are not accessible to LP 2 holders).
* **Strategy Vault Characteristics:** Each strategy vault has unique features that cater to different settings and goals. For comprehensive details on the characteristics of each vault, please refer to the [Strategy Vaults](/products/liquidity-automation/strategy-vaults) section.

### Transfer and Ownership:

* **Transfer of LP Tokens:** When you transfer your LP tokens to another user, the associated point accumulation rights are also transferred to the recipient, making the new holder eligible for earning points generated post-transfer.
* **Exception for Coral Finance:** A unique exception exists for users who engage with Coral Finance. Through our partnership, when you stake your LP tokens in the Coral Finance Points Hub, they manage the accumulation of points on your behalf. Participants can then claim QTLX airdrops directly through Coral Finance, facilitating a seamless integration of benefits.

### **Dynamic Updates and Expansion:**

* **Adding More Vaults:** As Quantlytica Earn Season 2 progresses, we are committed to expanding the number of available vaults. This expansion is designed to provide a broader range of opportunities for participation and earning potential.
* **Adjustment of Mining Speed:** To ensure fairness and optimal returns for all participants, the mining speed for each vault will be evaluated and adjusted dynamically every 120 hours. This regular assessment helps maintain balance and competitiveness within the mining ecosystem.

### **QTLX Point Mining Speed Table**

| Mining Speed \| Vault | Orderly Perp BTC Liquidity Provider powered by Elixir | Orderly Perp ETH Liquidity Provider powered by Elixir |
| --------------------- | ----------------------------------------------------- | ----------------------------------------------------- |
| Epoch 1: Aug 1 - 5    | 5000                                                  | 5000                                                  |
| Epoch 2: Aug 6 - 10   | TBA                                                   | TBA                                                   |

## Pre-TGE Marketplace with Coral Finance:

We understand the eagerness of many of our users to trade their accrued QTLX Points before our upcoming Token Generation Event (TGE). To support this, we have partnered with Coral Finance, creating a reliable and efficient platform specifically for trading your points.

### **Key Benefits of Trading with Coral Finance:**

* **Security and Efficiency:** Coral Finance provides a secure environment that ensures the safety of your transactions while maximizing the value of your QTLX Points.
* **Immediate Liquidity:** Through this partnership, you can convert your points into CorQTLX (Cor Tokens), which are pegged 1:1 with QTLX Points. This conversion offers immediate liquidity, allowing you to capitalize on your earnings without waiting for the TGE. Additionally, CorQTLX tokens retain the same airdrop rights as QTLX Points, preserving your future benefits.

### **How to Trade Your Points:**

1. **Understand Coral Finance:** Start by visiting Coral Finance using this link to access their comprehensive documentation: [Coral Finance Documentation](https://coral-finance.gitbook.io/coralfinance/point-hub/mint-and-claim-cortokens).
2. **Follow the Steps:** The documentation will guide you through the process of minting CorQTLX using your LP tokens. Designed to be user-friendly, these instructions ensure that even those new to digital token exchanges can navigate the process smoothly.
3. **Start Trading:** [**https://d-app.coraldex.finance/pointHub**](https://d-app.coraldex.finance/pointHub)

We encourage all users interested in trading their QTLX Points before the TGE to explore this opportunity. For any questions or additional guidance, refer to Coral Finance’s detailed documentation or contact our support team for more assistance.

## Multi-Project Collaboration

As part of Season 2, Quantlytica is dedicated to broadening the opportunities for our users through strategic liquidity deployment to several highly respected projects. This initiative enables participants to concurrently farm QTLX Points and secure token rewards from these collaborations, significantly enhancing their potential earnings. This dual benefit approach not only amplifies the value our users gain from their investments but also strengthens the ecosystem by integrating diverse financial opportunities.

### **Expansion and Integration of Strategy Vaults:**

* Throughout the duration of Season 2, we will continuously enhance our offerings by onboarding additional strategy vaults. These new vaults will be integrated with a diverse range of DeFi protocols, aiming to maximize and diversify the rewards available to our users.
* Each strategy vault is carefully selected and integrated to ensure it aligns with our standards for security, profitability, and user engagement.

For detailed information about each of the current and forthcoming strategy vaults, including their specific integration features and how they contribute to the broader Quantlytica ecosystem, please refer to the[ Strategy Vaults](/products/liquidity-automation/strategy-vaults) section.&#x20;

We encourage all participants to explore these opportunities as they develop, to fully leverage the synergies created through our multi-project collaborations. Stay tuned for ongoing updates and expansions as we progress through Earn Season 2.

## Final Airdrop Calculation and Claim Process: 1-to-1 Conversion up to 3,000,000 QTLX

The final amount of $QTLX airdropped to each participant will be determined based on the total QTLX Points they have accumulated, their corQTLX holdings, and any unclaimed CorQTLX on Coral Finance. The conversion from these points and tokens to $QTLX will be conducted at a 1:1 ratio, ensuring a straightforward and equitable distribution.

Details regarding the specific claim date and the rules for the airdrop will be announced closer to the Token Generation Event (TGE). Participants are encouraged to stay updated through our official channels for timely information on how and when to claim their $QTLX.

## Monitoring and Compliance

The Quantlytica team will actively monitor for any wash trading or fraudulent activities. Participants found violating the terms will be disqualified from receiving rewards.

## Terms and Conditions

The Quantlytica team reserves the right to modify, amend, or update the event rules and regulations at any time without prior notice, ensuring the program's integrity and fairness.


# Referral Program

Invite friends and earn unlimited rewards without tiers

At Quantlytica, we are dedicated to fostering a dynamic community while providing tangible benefits to our committed supporters. Our Referral Program is meticulously crafted not only to expand our user base but also to fortify the network of trust and support among users utilizing multiple blockchain platforms. By participating, you play an integral role in promoting Quantlytica. In return, you will receive Flyer points and could convert to Flyer tokens (FLY), that will bolster your own success and broaden your investment capabilities within our platform.

### **Program Overview**

* **Personal Invite Code:** Each member of Quantlytica receives a unique invite code. Share this code to invite new users to our platform, and become an ambassador for our expanding community.
* **Building Connections:** When someone joins Quantlytica using your invite code, a permanent invite relationship is established. This links all their future activities to you, recognizing your contribution to their Quantlytica journey.
* **Cross-Chain Functionality:** Our program is designed with multi-chain compatibility in mind, ensuring that whether your invitees register on Arbitrum, BNB, Polygon, or any other supported blockchain, the connections and rewards apply seamlessly. This flexibility and convenience underscore our commitment to user satisfaction.
* **Rewards and Incentives:** We prioritize rewarding our community by offering a 30% bonus on the points earned from deposits made and held by your invitees. For example, if an invitee deposits 100 USDT and maintains it for 10 days, accruing 100 Flyer points in the process, you will receive an additional 20 Flyer points as a referral reward. These Flyer points will be 1:1 converted into Flyer tokens, which you can then utilize either to mine QTLX or to deduct from subscription fees in the future. Please refer to our [tokenomics](/governance/tokenomics#duo-token-design) for more details regarding Flyer token.
* **Flexible Redemption:** You can redeem your earned rewards on any blockchain supported by Quantlytica. This flexibility allows you to maximize your benefits in a manner that aligns with your investment strategy.

By engaging in the Quantlytica Referral Program, you help us build a stronger, more interconnected community. Your efforts to introduce new members are invaluable, and we are thrilled to reward you for each contribution to our collective growth. Join us in expanding our network and reap the benefits of being a pivotal part of our community.

### Currently for Strategy Vault Participants

Our referral program is specifically designed for Strategy Vault participants, rewarding you with Flyer points when your invitees make deposits into strategy vaults. The greater the total value locked (TVL) contributed by your invitees, the more points you will accumulate. These points can be converted into Flyer tokens, increasing your rewards.

Looking ahead, once our subscription model is launched, inviters will benefit further by receiving a rebate on their invitees’ subscription fee payments. These rebates will be distributed in both USDT and Flyer tokens. We will provide more details as this feature becomes available.


# TaskOn Social Tasks

Beyond our earn season, Quantlytica is excited to reward our community for their social engagement. By completing tasks on TaskOn, users will earn "Quantlytica Points," which can be converted into Quantlytica Tokens ($QTLX) according to our rules after the Token Generation Event (TGE).&#x20;

Join our [TaskOn community](https://community.quantlytica.com/task) and start earning rewards today!


# Bug Bounty

Coming Soon


# Tokenomics

We created Quantlytica to fill a void in DeFi participation, with the goal of being decentralized, fair, liquid, and scalable.

Our approach integrates robust governance and financial incentives, promoting active participation and alignment among all stakeholders. The QTLX token is central to this strategy, facilitating secure transactions and stabilizing the platform. This comprehensive framework aims to ensure that Quantlytica not only meets but advances the community's needs, driving growth and success in the DeFi space.

## QTLX Token Distribution

Now more than ever, the significance of decentralized governance is evident, and we at Quantlytica take our responsibility seriously when it comes to distributing QTLX governance tokens. The QTLX Community remains our top priority.

We are excited to outline our plans for the distribution of QTLX governance tokens. As we continue to develop and expand, we will provide more detailed updates about new features. Your feedback is invaluable to us, and we encourage you to share your thoughts via Twitter and Telegram.

## The Big Picture

The total initial supply of QTLX is 100 million (100,000,000). The token distribution breaks down as follows:

<table><thead><tr><th width="233">Group</th><th width="128">Allocation</th><th>Details</th><th>Vesting</th></tr></thead><tbody><tr><td>Seed Round</td><td>4%</td><td>Angels and value-add investors.</td><td>10% at TGE, 6 months cliff &#x26; 12 month linear vesting</td></tr><tr><td>Strategic Round</td><td>5%</td><td>VCs and investors with strategic resources.</td><td>20% at TGE, 3 months cliff &#x26; 12 month linear vesting</td></tr><tr><td>KOL Round</td><td>0.5%</td><td>KOLs and platforms that maximizes tractions.</td><td>40% at TGE, 6 month linear vesting</td></tr><tr><td>Public Sale</td><td>2.5%</td><td>Major IDO round.</td><td>50% at TGE, 3 month linear vesting</td></tr><tr><td>Team &#x26; Future Investors</td><td>20%</td><td>Team, advisors and future value-add investors.</td><td>12 months cliff &#x26; 20 month linear vesting</td></tr><tr><td>Liquidity Provision</td><td>5%</td><td>Reserved for listing and market makers.</td><td>100% at TGE</td></tr><tr><td>Treasury</td><td>13%</td><td>Reserved for ecosystem growth and insurance.</td><td>12 months cliff &#x26; 24 month linear vesting</td></tr><tr><td>Community Incentives</td><td>45%</td><td>User incentive plans.</td><td>4 months cliff &#x26; 60 month linear vesting</td></tr><tr><td>Airdrop</td><td>5%</td><td>To incentivize early contributors and users.<br>- Earn Season 1: 1%<br>- Earn Season 2: 3%<br>- TaskOn Social Tasks: 1%</td><td>4 month linear vesting</td></tr></tbody></table>

## The Utility of QTLX

veQTLX is integral to the Quantlytica DAO and serves several key functions designed to reward liquidity contributors and engage long-term supporters in the governance of Quantlytica. veQTLX turns QTLX into a productive asset. It will have the same three main use cases as CRV - voting, staking, and boosting.

## How veQTLX works

1. Deposit 1 QTLX to receive 1 veQTLX.
2. veQTLX is non-transferable and non-tradeable.
3. **Fee Distribution**: veQTLX holders are entitled to a share up to 50% of the platform's revenue, further detailed in the [Fee Collection & Distribution](/governance/fee-collection-and-distribution) section
4. **Governance Participation**: QTLX and veQTLX holders gain governance rights, influencing the evolution of platform features and making key decisions.
5. **Exclusive Access**: Holders of QTLX and veQTLX enjoy access to premium features, including bespoke strategy design and advanced functions.
6. **Discounted Service Fee:** Quantlytica's key fee structure is requiring user to purchase CREDIT first then kick start their journey. QTLX can be used to purchase CREDIT at discounted rates compared to USDT.
7. **API Usage**: Our API is open to third parties, allowing them to access and use all Quantlytica's data without registration. QTLX can be used to purchase the number of requests at discounted rates compared to USDT.
8. **Fund Manager Reward:** DeFi projects aiming to increase TVL or protocol usage must offer $QTLX tokens as rewards to incentivize participation.

### **Buyback & Burn** <a href="#buyback-and-burn" id="buyback-and-burn"></a>

To enhance value for stakeholders and ensure the stability of the QTLX token, Quantlytica commits to using **up to 20% of monthly revenue** for a buyback and burn strategy. This will systematically reduce the QTLX token supply, potentially increasing its rarity and value. We will conduct these operations transparently, regularly updating our community on the process. This policy reflects our dedication to sound financial practices and our goal to develop a strong, sustainable ecosystem for Quantlytica users.

### Future Utility  in Phase 2

1. **Insurance**: QTLX tokens provide an option to purchase insurance coverage for yield loss at reduced prices compared to traditional USDT payments. This benefit allows token holders to secure their investments on the Quantlytica platform, mitigating potential financial risks at a more affordable cost.
2. **Data Analytics Services**: QTLX will also be accepted as payment for proprietary market analysis, data insights, and push notifications for both institutions and individuals.

## Duo Token Design

To align incentives and maximize user engagement while minimizing QTLX token dilution, Quantlytica is introducing the 'Flyer Token' (symbol: FLY) as a complementary token system. Modeled after the 'miles and points' concept, the Flyer Token is designed to reward our most active users and contributors to the ecosystem.

Key Characteristics of Flyer Token (FLY):

* **Stable Value**: Each FLY is pegged at a constant value of 1 USDT within the Quantlytica platform, ensuring reliability and stable utility.
* **Primary Usage**: Flyer tokens can be used to offset expenses related to subscription directly benefiting users by reducing out-of-pocket costs.
* Users could burn their Flyer tokens to share monthly QTLX release.  More details can be found in the [Flyer Token Mining ](/governance/qtlx-staking#flyer-token-mining)section.
* **Non-Tradable**: Flyer tokens are exclusive to the Quantlytica platform; they cannot be transferred or traded on secondary markets.
* **Unlimited Supply**: Although the supply of FLY is unlimited, its issuance and utility are meticulously managed to maintain ecological balance.
* **Multi-Chain:** FLY Token will be available on every chain supported by the Quantlytica protocol. For example, if you earn incentives on Arbitrum, you receive Flyer Tokens on Arbitrum, and similarly on Ethereum for contributions made there. Quantlytica will work with Chainlink to offer an official bridge for Flyer Tokens to transfer between supported chains. This ensures users can enjoy seamless asset management and easily collect rewards across multiple chains safely and efficiently.

Ways to Acquire Flyer Tokens:

* **Volume-based Airdrops**: High-volume traders and TVL contributors on Quantlylica will accrue Flyer Points/Flyer tokens as an incentive for continued use of the platform and to offer savings on service costs.
* **Referral Program**: Users who invite new members to Quantlytica will earn Flyer Points/Flyer tokens, promoting community growth and active participation. More details can be found in the [Referral Program](/reward-program/referral-program) section.
* **Bug Bounty and Contributions**: Users who report bugs, suggest valuable enhancements, or design future strategies that benefit the platform will be rewarded with FLY tokens.
* **Cross-Chain Bridge**: Users can bridge their Flyer tokens freely across any blockchain supported by Quantlytica using our official bridge powered by Chainlink. This feature provides flexibility and allows users to optimize their benefits according to their individual investment strategies.

In summary, the Flyer Token system is a strategic initiative to enhance user engagement and loyalty, while providing a sustainable mechanism to reward and appreciate our user base's active participation and contributions.


# QTLX Staking

## Staking $QTLX for $QTLX&#x20;

In the initial months following our Token Generation Event (TGE), Quantlytica is excited to offer a time-limited staking program designed to both benefit and reward our early adopters. This program is aimed at building a sustainable future where $QTLX holders experience real value and growth.

**Program Details:**

* **Total Pool Size:**&#x20;
  * **30 days**: 600,000 $QTLX
  * **60 days**: 800,000 $QTLX
  * **180 days**: 1,000,000 $QTLX
* **Base APY**: Participants in the program will enjoy a base Annual Percentage Yield (APY) of 45%. You are free to stake any amount of your choosing.
* **Flexible Staking Options**: Depending on your investment strategy and how long you wish to stake your QTLX, you can select from three different staking schedules, each offering an increased boost to the base APY:

  * **30 days**: 1x on base, yielding a 45% APY
  * **60 days**: 2x on base, yielding a 90% APY
  * **180 days**: 4x base, yielding a 180% APY

  For instance, if you choose to stake 1,000 QTLX for 60 days, you will receive:

$$
1000×0.9/365×60=148 QTLX
$$

* **Early Termination Option**: Unlike other protocols where your funds are locked, our staking program allows for early termination. Should you choose to withdraw your stake before the end of the staking period, you will forfeit any staking rewards accrued and incur a 10% penalty on the staked amount. This penalty will be redirected to the treasury to support continued growth and stability of the platform.

This innovative staking approach ensures that $QTLX holders are not only rewarded for their trust and support but also have flexible options to manage their investments.

## Staking $QTLX for USDT

In the early months after our Token Generation Event (TGE), Quantlytica will launch an exclusive, time-limited yield program, allowing users to earn extra $QTLX and share in the platform's past revenue, distributed in USDT.

**Program Details:**

* **Total Pool Size:** 1,000,000 $QTLX
* Raising Period: from 2024/09/13 9AM UTC+0 to 2024/09/16 9AM UTC+0
* **Duration:** 30 days, starting once the pool is filled or on 2024/09/16 9AM UTC+0
* **APY**: Participants will enjoy a 50% Annual Percentage Yield (APY), split as follows:
  * 25% in USDT
  * 25% in $QTLX
* For instance, if you choose to stake 1,000 $QTLX, you will receive:
  * 1000×0.25/365×30 = 20.55 $QTLX
  * 1000×0.2×0.25/365×30 = 4.1 USDT
* **No Early Termination:** This staking program does not allow early unstaking of your $QTLX.

This innovative staking program ensures that $QTLX holders are not only rewarded for their trust and support but also have flexible options to manage their investments.


# Fee Collection & Distribution

From its inception, Quantlytica has been committed to aligning the interests of platform contributors and governance participants. Moving forward, Quantlytica will distribute up to 50% of platform fees from subscriptions and other fee revenues across different chains' deployments to veQTLX token holders. To benefit from this fee distribution, QTLX holders must deposit their tokens in the voting escrow contract.

## **Monthly Distribution Schedule:**

* **Calculation of Fees:** The portion of fees each participant is eligible to receive is determined in real time. This calculation is based on the proportion of veQTLX tokens each user owns relative to the total amount of veQTLX on the platform.
* **Timing of Distributions:** Although fees are generated across multiple chains, veQTLX tokens exist only on Arbitrum (and one other chain TBD). Quantlytica will bridge fees monthly, determining the portion of fees in real time, but distributing the final amounts to veQTLX holders at the end of the month based on the fees collected across different chains.

This structured approach ensures that the distribution of fees is transparent, timely, and equitable, fostering a mutually beneficial relationship between Quantlytica and its community of token holders.


# Tokens & Contracts Addresses

We only list the address on Mainnet

<table><thead><tr><th width="225">Contract</th><th width="129">Chain</th><th>Address</th></tr></thead><tbody><tr><td>Staking &#x26; Quantlytica EXP Boost NFT</td><td>Bitlayer</td><td>0x44c1dC36293eB63393b5147D5dc4c2b15Edf6B94</td></tr><tr><td></td><td></td><td></td></tr></tbody></table>

<table><thead><tr><th width="137">Token</th><th width="124">Symbol</th><th width="108">Chain</th><th>Address</th></tr></thead><tbody><tr><td>Quantlytica Token</td><td>QTLX</td><td>Arbitrum</td><td>0x4d840b741bc05fde325d4ec0b4cfcd0cea237e4e</td></tr><tr><td>Flyer Token</td><td>FLY</td><td>Arbitrum</td><td>0xe3e77D32C7D7ee0656d2c1C6de812F463bAeE878</td></tr><tr><td></td><td></td><td></td><td></td></tr></tbody></table>


# DeFi Glossary

#### Aave <a href="#aave" id="aave"></a>

[Aave](https://aave.com/) is an open-source and non-custodial lending protocol enabling the creation of money markets.

Users can earn interest on deposits and also borrow assets. Aave provides depositors a Liquidity Token that represents an equivalent derivative deposit in an identical asset.

For example, a user can deposit DAI and receive aDAI, which is a type of USD-based crypto derivative that essentially represents the value of the underlying DAI asset plus the interest gains from allowing the borrowing of one's DAI. That aDAI, could then also be used to implement further strategies to potentially amplify their gains even further.

#### Audit <a href="#audit" id="audit"></a>

An audit is either an internal or independent comprehensive review of a concept, system, process, company, or product. A comprehensive audit includes a thoughtful and in-depth look at the structure, strengths, weaknesses, and vulnerabilities of the thing or process being audited.

Audits may be either informal or formal audits and are meant to be a tool to find and analyze weaknesses, so that issues and problems discovered during an audit may be remediated, mitigated, or corrected.

#### APY <a href="#apy" id="apy"></a>

Annual Percentage Yield, a time-based measurement of the Return On Investment (ROI) on an asset. For example, $100 invested at 2% APY would yield $102 after one year, if there is no compounding of any interest earned on that $100 through the year. Assuming a static APY rate, the Monthly ROI would be 0.16%, in this case.

#### Arbitrage <a href="#arbitrage" id="arbitrage"></a>

The trading of a coin or crypto derivative, where the price spread between two different markets or exchanges for the same asset or product is utilized to earn greater profits.

In DeFi, automated yield farming uses algorithmic arbitrage strategies to maximize returns for investors. These arbitrage strategies may include buying, selling, lending, and/or providing liquidity of one or more digital assets, often in the same day.

#### Automated Market Maker <a href="#automated-market-maker" id="automated-market-maker"></a>

An Automated Market Maker (AMM) is a decentralized asset trading pool that enables market participants to buy or sell cryptocurrencies. AMMs are non-custodial and permissionless in nature. Most AMMs utilize either a constant product, constant mean, or constant sum market-making formula; however, the most common is a constant product market maker, most notably [Uniswap](https://uniswap.info/).

#### Balancer <a href="#balancer" id="balancer"></a>

From the [Balancer](https://balancer.finance/) whitepaper definition:

> A Balancer Pool is an automated market maker with certain key properties that cause it to function as a self-balancing weighted portfolio and price sensor.
>
> Balancer turns the concept of an index fund on its head: instead of paying fees to portfolio managers to rebalance your portfolio, you collect fees from traders, who rebalance your portfolio by following arbitrage opportunities.
>
> Balancer uses a Constant Mean Market Maker (CMMM)that enables non-equal weights for pools (e.g., 80/20 vs. 50/50) and also allows LPs to provide single-sided liquidity.

#### Bear Market <a href="#bear-market" id="bear-market"></a>

A period marked by prevailing negative investor sentiment about an asset or class of assets. A bear market can last weeks, months, or years.

#### Blockchain <a href="#blockchain" id="blockchain"></a>

An immutable permanent public record or ledger of all transactions since the beginning of a cryptocurrency coin or token.

#### Bull market <a href="#bull-market" id="bull-market"></a>

A period marked by prevailing positive investor sentiment about an asset or class of assets. A bull market can last weeks, months, or years, and can sometimes be marked by what economists call a Bubble, where there may be irrational overenthusiasm about an asset or class of assets, leading to explosive price growth followed by an explosive price crash.

#### CeFi <a href="#cefi" id="cefi"></a>

Centralized Finance. In terms of cryptocurrency, CeFi is represented by centralized cryptocurrency exchanges, businesses, or organizations with a physical address, and usually with some sort of corporate structure. These CeFi businesses must follow all applicable laws, rules, and regulations in each country, state, or region in which they operate.

#### CEX <a href="#cex" id="cex"></a>

A CEX is a Centralized Exchange, with a physical address and a corporate structure. Like other CeFi businesses, a CEX must follow all applicable laws, rules, money transmitter licenses, and regulations in each country, state, or region in which they operate. There are significant overhead costs in running a CEX including Corporate leaders, labor, rent and electricity, office supplies, significant legal expenses, and expensive money transmitter licenses to be able to operate in chosen countries, states, or regions.

#### Coin <a href="#coin" id="coin"></a>

A form of digital currency primarily used for payments or storage of wealth. Coins are secured by encryption algorithms. The market price of the coin represents the value of the ownership of a divisible unit of the coin or token (another name for a coin, but a type of coin with greater functionality) at a given moment in time. This coin or token can represent a share of the ownership and/or governance of a coin, token, protocol, company, or project and all of the benefits that this may entail.

#### Collateralization <a href="#collateralization" id="collateralization"></a>

The borrowing of a deposit asset or assets to seek further business activities such as Yield Farming. Collateralization can amplify gains or losses, and is thus, considered riskier than not borrowing funds.

#### Compound <a href="#compound" id="compound"></a>

The DeFi platform [Compound](https://compound.finance/). From the Compound DAO's description:

> an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.
>
> Compound was built using community built interfaces and is an example of traditional institutional investors and CIIs (Cryptocurrency Institutional Investors) collaborating on a product that benefits both groups of investors, and the CeFi and DeFi communities.

#### Cryptocurrency <a href="#cryptocurrency" id="cryptocurrency"></a>

A form of digital currency protected by encryption algorithms and represented as a digital coin or token. Cryptocurrency coins are programmed to systems and networks for:

* Minting
* Release
* Reward
* Distribution
* Governance
* Ability to make future changes

These digital coins or tokens include a ledger or blockchain record of all transactions that occur on their respective networks.

#### Curve <a href="#curve" id="curve"></a>

[Curve](https://compound.finance/) is a decentralized stablecoin Automated Market Maker (AMM), that offers low-slippage trades among stablecoins (DAI, USDC, USDT, TUSD, BUSD, sUSD) and other synthetic assets (wrapped BTC) on the Ethereum blockchain. One advantage to providing liquidity in similar assets such as the above USD equivalents is that it is one solution to mitigating Impermanent Loss (IL) for Liquidity Providers (LPs) for the crypto derivatives and the output of the Curve.Finance Smart Contract, which utilizes four USD digital equivalent tokens to form a composite token called CRV.

#### dApp <a href="#dapp" id="dapp"></a>

A 21st-century invention, a dApp is a decentralized Web3 application that normally runs on a blockchain. Advantages of dApps are that: they allow for new solutions to problems, they are decentralized and are thus rugged, and they are resistant to outages and censorship.

dApps can provide decentralized software application services - such as the Brave browser - but it can also be used to trace and track goods, and can be used to enable international financial transactions without the delay, costs, and hassle of middlemen and bureaucracy. They can also be a keystone to the functionality of complex decentralized exchanges and crypto financial services such as price oracles.

#### DAO <a href="#dao" id="dao"></a>

Distributed Autonomous Organization. The first DAO was started in 2016. According to Wikipedia's definition, it is an:

> "organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government. A DAO's financial transaction record and program rules are maintained on a blockchain."
>
> When implemented well, a DAO allows for real-world experiments in decentralized democratic organization and control, with more freedom of action and less regulatory oversight for DAO controlled projects and products when compared to legacy corporate structures and organizations.

#### DeFi <a href="#defi" id="defi"></a>

DeFi, or Decentralized Finance, is at its root a set of Smart Contracts running independently on blockchains such as the Ethereum network. Smart Contracts may or may not interact with other smart contracts and even other blockchains.

The goal of DeFi is to enhance the profitability of investors in DeFi through automated smart contracts seeking to maximize yields for invested funds. DeFi is marked by rapid innovative progression and testing of new ideas and concepts.

DeFi often involves high risk investing sometimes involving smart contracts that have not been audited or even thoroughly reviewed (a review is not as comprehensive as an audit, but may also be included as part of an audit). Due to this and other reasons, DeFi is conventionally considered to be riskier than CeFi or traditional investing.

#### Delegation <a href="#delegation" id="delegation"></a>

The concept of permitting a person, company, or organization the ability to borrow utilizing another owner's deposited collateral.

#### Derivative <a href="#derivative" id="derivative"></a>

In investing, a derivative is an investment instrument or tool that is based on an underlying asset or assets. Investopedia describes it thus:

> Derivatives can be used to hedge a position, speculate on the directional movement of an underlying asset, or give leverage to holdings. Their value comes from the fluctuations of the values of the underlying asset. Originally, derivatives were used to ensure balanced exchange rates for goods traded internationally.
>
> In DeFi, since 2020 there now exists a crypto derivative that is a new type of investment or asset class. This crypto derivative is a representation of an underlying digital base asset such as Ethereum, Dai, Curve, or YFI. Examples of their respective derivatives are yETH, aDAI, yCRV, and yYFI.

#### DEX <a href="#dex" id="dex"></a>

Decentralized EXchange. A cryptocurrency exchange that is decentralized, without a physical location. It is a Peer-2-Peer network operating on Smart Contracts where users buy and sell directly to one another, with only the DEX as a middleman. Without the high overhead and regulatory costs of doing business as a CEX, a DEX does not have to follow the stricter rules and regulations that CEXs must follow, and thus can be leaner, more profitable, and more efficient than a CEX. (For example: How does one sue or arrest an automated Smart Contract which is running on a Virtual Machine that is globally distributed? \[Comment: TMI?])

#### Ethereum <a href="#ethereum" id="ethereum"></a>

Bitcoin is the original cryptocurrency but Ethereum, which launched in July 2015, allows for much more complexity through the use of smart contracts and a Turing complete programming language.

Thanks to the ERC-20 protocol, Ethereum has many cryptocurrency coins such as LINK, CRV and YFI built on top of Ethereum, each with their own set of rules.

#### ERC-20 <a href="#erc-20" id="erc-20"></a>

A cryptocurrency protocol based on the Ethereum blockchain. An ERC-20 coin, by definition, uses this protocol.

#### Fair Launch <a href="#fair-launch" id="fair-launch"></a>

A concept where a Developer decides to not seek outside investment and also does not hold back a share of a coin or token's launch for themselves or others. This is considered to be much fairer to early investors as their share of equity or ownership of a coin or token is not diluted by pre-investors or founders/founding teams.

#### Fair Launch Coin or Token <a href="#fair-launch-coin-or-token" id="fair-launch-coin-or-token"></a>

A Fair Launch coin or token is characterized by a launch that is fair to the public. This means that there was no Founder, Foundation or Development Team, Venture Capitalist, or early investor pre-allocation or pre-mining program to privately claim a portion of a coin's supply before its release for sale to the public. The first Fair Launch token was YFI, which was launched in 2020 by Developer Andre Cronje.

#### Fiat <a href="#fiat" id="fiat"></a>

Investopedia's definition:

> Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.
>
> It usually requires fiat exchanged at a CEX or through local means such as Bitcoin ATMs to be able to purchase cryptocurrency with fiat currency.

#### Flash Loan <a href="#flash-loan" id="flash-loan"></a>

A type of loan that is only possible in the world of cryptocurrencies. A Flash Loan is a type of loan where the asset, often Ethereum or an ERC-20 coin, is loaned out only for the duration of the length of time it takes to complete one transaction block on the blockchain. As long as the loan is paid back before the next transaction block begins there is no interest fee incurred by the borrower.

Flash Loans allow for new types of investments that are nearly instantaneous algorithmic scripts to run in Smart Contracts that can be stacked upon one another for innovative yet sometimes risky investments. Flash Loans may also have vulnerabilities that may include systems vulnerabilities that take advantage of approved existing systems but are used in a novel malicious manner.

#### FOMO <a href="#fomo" id="fomo"></a>

Fear Of Missing Out. The feeling that everyone else seems to be getting rich, profiting, or generally having a great time without you. In investing, it's a feeling that your current portfolio isn't performing well enough when compared to newer and "shinier" investment choices and options.

#### Forced Liquidation <a href="#forced-liquidation" id="forced-liquidation"></a>

Binance defines Forced Liquidation as:

> In the context of cryptocurrencies, forced liquidation happens when the investor or trader is unable to fulfill the margin requirements for a leveraged position. The concept of liquidation applies to both futures and margin trading.

#### Gas Fees <a href="#gas-fees" id="gas-fees"></a>

Gas fees are rewards paid to Proof Of Work miners to incentivize them to support the network's transactions which become written to the blockchain. In Ethereum, this gas fee unit amount is expressed in gwei. Withdrawals or transfers to or from CEXs, DEXs Liquidity Pools, and Wallets all incur a gas fee. The amount of this gas fee will vary in cost depending on supply and demand. As currently designed: when demand on Ethereum or an ERC-20 network is at its highest, gas fees are at also their highest.

#### Governance <a href="#governance" id="governance"></a>

Governance refers to the control and use of a Governance coin, token, and/or project through various measures to grow the ecosystem or product and to maximize gains for governance token holders.

#### Governance Token <a href="#governance-token" id="governance-token"></a>

A token is used to govern the operations and influence the direction of a coin, token, and/or project controlled by the Governance Token. Holding these tokens is often profitable through direct price appreciation of popular governance tokens, but may come with other benefits that are only available to governance token holders and voters. Examples of governance tokens are MKR and YFI.

#### Gwei <a href="#gwei" id="gwei"></a>

A unit of measurement of gas fees for transactions on the Ethereum network or ERC-20 coin networks.

#### HODL <a href="#hodl" id="hodl"></a>

A misspelled word by a crypto investor on an online forum from the early days of cryptocurrency, HODL became a term that was embraced as an inside joke by the nascent community of investors, coders, and entrepreneurs who supported coins like Bitcoin and Ethereum in the early days. They believe in the long-term promise of cryptocurrencies and held their investments through periods of massive volatility or even no volatility (i.e., price stagnation).

The choice or decision to hold onto one's crypto investments through bull and bear markets is called HODLing.

#### HODLer <a href="#hodler" id="hodler"></a>

One who HODLs.

#### Impermanent Loss <a href="#impermanent-loss" id="impermanent-loss"></a>

In Automated Market Makers (AMM) lending providers (LPs) contribute assets for liquidity to market participants. These AMM pools utilize a bonding curve, typically built on a constant function market marker formula. Asset prices are constantly changed by the AMM pool in response to trading activities by participants. This is an effort to ensure that LPs can receive the same amount of assets they deposited when they withdrawal.

However, due to the volatility of asset prices and arbitragers, LPs occasionally will not receive the exact amount of assets upon withdrawal. The dollar value of the assets they withdraw would typically be lower than if they had not provided liquidity and just held the assets. This dollar value shortfall is known as impermanent loss. The loss is said to be impermanent because if asset prices return to the level during withdrawal the loss is eliminated.

#### Institutional Investor <a href="#institutional-investor" id="institutional-investor"></a>

The Dictionary definition:

> a large organization, such as a bank, pension fund, labor union, or insurance company, that makes substantial investments on the stock exchange.
>
> In CeFi & DeFi, traditional institutional investors have an easier on-ramp into cryptocurrency should they seek higher yields albeit at higher risks.

We have also seen a rise of a new type of a virtual mutual fund, a decentralized cryptocurrency funded mutual fund controlled by governance tokens and Smart Contracts called a Cryptocurrency Institutional Investor.

Unlike traditional mutual funds most of these CIIs are decentralized virtual institutes, usually governed and operating as a DAO - dedicated to using pooled funds and assets efficiently. CIIs wield available funds, tools, products, assets, votes via governance tokens, and Smart Contracts tactically and strategically to maximize investor's gains.

#### Lending Aggregator <a href="#lending-aggregator" id="lending-aggregator"></a>

A program or set of smart contracts that automatically seeks the best lending rates for depositors loaning coins for returns on their investment or ROI.

#### Lending Provider <a href="#lending-provider" id="lending-provider"></a>

A Lending Provider is a person or group who provides cryptocurrency capital in exchange for a share of rewards and fees gained by lending out and providing liquidity for various cryptocurrency coins and their respective networks. Loans are provided to traders, investors, exchanges, cryptocurrency networks, DAOs, and CIIs to take advantage of arbitrage opportunities and business opportunities by actors within the CeFi and DeFi space.

#### Leverage <a href="#leverage" id="leverage"></a>

The use of multipliers on exchanges or markets that allow leveraged trading, such that providing 1 BTC deposit on such an exchange could provide the investment power of 10 to 100 BTC if used at 10x to 100x leverage.

Leveraged trades can amplify gains greatly. However, should the trade be unprofitable, it can also amplify losses greatly. The downside of this risky approach is that the entire deposit, 1 BTC in this example, could be lost in a liquidation event where a margin call on this leveraged trade could result in the entire deposit being lost during times of massive volatility and insufficient reserve funds for the investor, trader, or CII.

#### Liquidation Event <a href="#liquidation-event" id="liquidation-event"></a>

Another term for a Forced Liquidation, where due to rapid market changes, or a change in prevailing market sentiment, a trader or investor is unable to meet a margin call on their leveraged investment, their trading position is eliminated or liquidated, and the investor loses all or part of their initial investment(s).

#### Liquidity <a href="#liquidity" id="liquidity"></a>

A measure of how much available circulating supply there is of an asset or currency, and the activity of that asset or currency in an exchange, economy, or network. A currency with low supply and/or circulation is said to be illiquid.

#### Liquidity Mining <a href="#liquidity-mining" id="liquidity-mining"></a>

An energy-efficient form of cryptocurrency mining that supports work and transactions on a blockchain usually without expensive application or hardware-specific equipment required by older forms of cryptocurrency mining.

Rewards are provided to liquidity providers as a means to incentivize liquidity mining providers, in addition to growing and supporting a blockchain's user base.

#### Liquidity Pool <a href="#liquidity-pool" id="liquidity-pool"></a>

An LP, or Liquidity Pool, is a pool of deposited funds meant to provide liquidity to a currency, network, or Smart Contract. Liquidity is considered the lifeblood of any physical or digital currency, exchange, or financial network, so there will be designed rewards or incentives given to those who provide liquidity to LPs.

#### Liquidity Providers <a href="#liquidity-providers" id="liquidity-providers"></a>

In the realm of cryptocurrency and DeFi, this refers to investors who deposit an asset to provide liquidity on an exchange and/or network(s) to gain an ROI on their investment. Investors deposit one or more of their digital assets into decentralized Liquidity Pools (LPs) to provide liquid capital to exchanges and smart contracts. Liquidity Providers often provide two or more types of assets, in which Impermanent Loss is sometimes seen.

#### Liquidity Token <a href="#liquidity-token" id="liquidity-token"></a>

Implemented via Smart Contracts, a liquidity token is given to a depositor in exchange for that investor's deposit(s) to be used for other purposes such as yield farming. Examples of liquidity tokens include aDAI, yCRV, and yYFI. A liquidity token can be exchanged back

#### Maker <a href="#maker" id="maker"></a>

[Maker](https://makerdao.com/en/) is a decentralized governed financial ecosystem based on a Stablecoin called DAI. DAI is algorithmically pegged to $1 USD, with no volatility. A digital asset with no volatility at all, is sometimes seen as a hedge or safety measure in times of high volatility or during Bear markets.

#### MakerDAO CDP <a href="#makerdao-cdp" id="makerdao-cdp"></a>

The MakerDAO in charge of it describes it as:

> "The MakerDAO Collateralized Debt Position (CDP) is a smart contract which runs on the Ethereum blockchain. It is a core component of the Sai Stablecoin System whose purpose is to create Sai in exchange for collateral which it then holds in escrow until the borrowed Sai is returned."

#### Margin <a href="#margin" id="margin"></a>

An available avenue of borrowed capital that is considered very high risk, as collateral must be provided for a margin loan to secure the loan. It is called margin or a margin loan because a risky loan is being taken on the margins of the investment to hopefully amplify gains for the investor or trader.

A margin loan is considered very high risk as the deposited base asset is at risk of liquidation during a margin call.

#### Margin Call <a href="#margin-call" id="margin-call"></a>

The act of implementing a Forced Liquidation or Liquidation Event when an investor or trader cannot meet debt obligations on leveraged trade positions. Margin calls can be triggered by rapidly changing market conditions and high volatility that bring Liquidation Events for some leveraged traders on exchanges and markets.

#### Marketcap <a href="#marketcap" id="marketcap"></a>

Market Capitalization. A measure of the total funds invested in a company or project. This market cap of a coin, company, or project can be calculated by multiplying the asset's unit price by the total number of coins.

#### MetaMask <a href="#metamask" id="metamask"></a>

[MetaMask](https://metamask.io/) is a popular mobile or desktop software cryptocurrency wallet that can hold, transmit or receive Ethereum and ERC-20 compatible coins or tokens.

#### Mining Pool <a href="#mining-pool" id="mining-pool"></a>

A pool of cryptocurrency miners that provides mining services to a cryptocurrency network. Mining Pool operators and contributors are incentivized by a coin or token's programmed mining rewards to support transactions and provide liquidity on a coin's network.

#### Multisig Wallet <a href="#multisig-wallet" id="multisig-wallet"></a>

A multiple signature wallet is a cryptocurrency wallet that controls access and changes to one or more Smart Contracts. Community governed projects like a DAO often require multiple signers to approve a transaction before it will be executed. For community-based efforts, Multisig wallets for DAOs and DeFi projects are often implemented as 6 of 9 wallets, where 6 of 9 community wallet signers must agree to sign a transaction before a Smart Contract can be implemented.

#### Oracle <a href="#oracle" id="oracle"></a>

A feed of data, such as the current market prices of an asset or assets, that provides a high confidence service to users and other services that the source and detail of the oracle's data are timely, accurate, and untampered. Sources of data may be singular or decentralized sources and may be dispersed geographically from one another. All exchanges and markets require accurate and timely information to operate properly at high efficiency. An example of the most well-known oracle protocol is Chainlink (LINK).

#### Pool <a href="#pool" id="pool"></a>

A smart contract containing shared amounts of assets provided by depositors. Pools are either used in Automated Market Makers (AMMs)for optimized trading purposes, lending aggregation (yPool), or in shared yield farming strategies (yVaults), among other things.

#### Protocol <a href="#protocol" id="protocol"></a>

In High Technology, a protocol is a set of developed rules or specifications. These rules detail definitions, standards, limitations, and potential stipulations of a protocol. Examples of technology protocols include TCP/IP and ERC-20.

#### Rebalance <a href="#rebalance" id="rebalance"></a>

1. To make changes to a portfolio or pool of funds for various reasons.
2. An automated or manual tactical change to a yield farming strategy that is meant to nearly instantaneously do one or more of the following actions:
   * Gain profits through arbitrage
   * Take or secure profits
   * Reduce risks to investors or pooled funds

During periods of high volatility, the latter is especially the case if margin or leveraged funding is used by the trader, investor, or controller in charge of pooled funds. If an assessment is made that market conditions are a risk to invested funds, mitigation efforts will be implemented either autonomously or through manual intervention to reduce risks to invested funds.

#### Retail Investor <a href="#retail-investor" id="retail-investor"></a>

A non-professional individual investor who buys, sells, lends and/or yield farms cryptocurrencies, crypto derivatives, and crypto offerings. Retail investors pay full retail price for their transactions, instead of benefitting volume discounts and other preferential treatment reserved for whales and CIIs.

#### ROI <a href="#roi" id="roi"></a>

Return On Investment. The gains or losses on an investment. For example, doubling your investment in an asset would be a 100% gain, or 100% ROI. Losing all of your investment would be a 100% loss, or -100% ROI.

#### Slippage <a href="#slippage" id="slippage"></a>

In trade, there is almost always a spread between the price that a buyer will pay and the price that a seller will sell an asset. When an order is made, this difference in price between buyer and seller expectations results in price slippage. This slippage in price is usually 1-3% but can be even more for coins with limited liquidity. This slippage can lead to a final sale price of the asset that is either more or less than the requested transaction amount.

#### Smart Contract <a href="#smart-contract" id="smart-contract"></a>

A digital contract that is programmed in a language that is considered Turing complete, meaning that with enough processing power and time, a properly programmed Smart Contract should be able to use its code base and logical algorithms to perform almost any digital task or process. Ethereum's programming languages, such as Solidity and Vyper, are Turing complete.

#### Spread <a href="#spread" id="spread"></a>

When an order is made on an exchange or market, the disagreement of the difference in price between potential buy and sell offers of an asset is called the spread. A wide spread in price can lead to higher slippage.

#### Stablecoin <a href="#stablecoin" id="stablecoin"></a>

In cryptocurrency, it is a digital cryptocurrency equivalent to one (1) Dollar USD. In theory, the price of the stablecoin is pegged to the US Dollar, but in practice, there is some variance to nearly all stablecoins except for coins like DAI, which are designed with no volatility.

A stablecoin is an attractive investment to investors because:

* It can be used as a safe harbor or hedge for cryptocurrency funds in times of downward volatility, also known as a bear market, whether this trend in downward volatility is temporary or prolonged in duration.
* It can be used as diversification into the realm of Cryptocurrency finance to take advantage of new products in CeFi and DeFi that are unavailable elsewhere, as a safe diversification into crypto that won't lose nor gain significant value to the stablecoin price.
* A coin with a stable price is used for transferring crypto around, as a means to not lose value in the base asset itself as it's being moved around or deployed to Smart Contracts or wallets.

#### Stake <a href="#stake" id="stake"></a>

The act of depositing a cryptocurrency coin or token into a yield farming project and/or protocol, whether the access to the project is either through CeFi or DeFi methods.

Stakers hope to gain interest on their deposits into these yield farming projects and offerings. CeFi is considered safer for several reasons - including strict rules, permitting, and regulations. However, DeFi tends to give much high rewards, while being accompanied with much higher risks, the earlier the investor participates in the project's lifecycle, testing, and development.

#### Staking <a href="#staking" id="staking"></a>

The act of staking a cryptocurrency deposit to yield farm additional cryptocurrency via CeFi or DeFi staking offerings, programs, or projects.

#### Testnet <a href="#testnet" id="testnet"></a>

A testing network for a new coin, project, or product, or for potential improvements to an existing product or offering. Testnets are used to test the viability and vulnerability of new ideas, concepts, code, and processes prior to moving on to a production network or networks of some sort.

#### Token <a href="#token" id="token"></a>

A type of coin, except with much greater functionality. Tokens can also be used as a method of payment like coins, but unlike coins, they can excel at other use cases such as the democratic governance of a protocol or system, or as a means to use underlying coins to make liquidity tokens from these coin deposits.

These liquidity tokens could then be used in innovative new strategies elsewhere via delegated funds to amplify gains with little risk to the underlying asset the liquidity token is based upon. An investor could choose this action so that further gains to their assets may be made by using the automated actions of intelligent Smart Contracts to optimize gains.

#### Turing Complete <a href="#turing-complete" id="turing-complete"></a>

In programming, it refers to a language that is powerful and semi-autonomous, in a way. When a language such as Solidity or Vyper is Turing complete, it means that with enough processing power and time, a properly programmed Smart Contract using a Turing complete language should be able to use its code base and logical algorithms to perform nearly any digital task or process.

A Turing complete language can even be programmed to have impacts on real-world activities through electronic means, as these rapidly executed digital commands can trigger actions in the real world through sensors, relays, switches, cameras, alarms, and alerts that can trigger a human and/or automatic response.

The concept of a Turing complete programming language was named after the inventor of the idea, Alan Turing. He was an unsung war hero and legendary mathematician. Turing was also a renowned and brilliant computer scientist, cryptanalyst, and forward thinker.

#### TVL <a href="#tvl" id="tvl"></a>

The Total Value Locked into a Smart Contract or set of Smart Contracts that may be deployed or stored at one or more exchanges or markets. This is used as a measurement of investor deposits. It is the dollar value of all the coins or tokens locked into a platform, protocol, lending program, yield farming program, or insurance liquidity pool.

#### Volatility <a href="#volatility" id="volatility"></a>

In investing, a measure of how rapid changes are seen to the price of an asset or market. Newer early-stage technology companies and projects in the explosive growth stage tend to see very high volatility in the price of their assets in their early days. Should the company or project behind the volatile asset see their venture survive over time, this volatility tends to be much reduced as the company's market cap grows and matures.

#### Wallet <a href="#wallet" id="wallet"></a>

A software or hardware cryptocurrency wallet that can hold a variety of coins.

Wallets may also be considered a cold wallet - meant to be used for long term storage of crypto coins for security purposes or a hot wallet, which is considered more at risk than a cold wallet due to its inaccessibility (usually offline). A hot wallet is meant to be used for active or semi-active transactions in and out of that wallet, as well as a place to withdraw or add funds.

#### Whale <a href="#whale" id="whale"></a>

A person who HODLs a large amount of cryptocurrency or cryptocurrencies.

#### Yearn Finance <a href="#yearn-finance" id="yearn-finance"></a>

A suite of DeFi tools and products in an interconnected financial ecosystem running on various smart contracts. The yEarn Finance ecosystem is community-controlled and governed via a governance token called YFI.

#### Yield Farming <a href="#yield-farming" id="yield-farming"></a>

The manual or automatic lending and/or arbitrage of digital assets to provide an ROI for lending out or depositing digital assets in CeFi or DeFi. Yield Farming can provide an additional income stream over and above any potential increase in the value of an underlying asset. For several reasons - including the ability to make rapid changes, much lower overhead costs, and no regulatory costs - DeFi tends to provide much higher yields when compared to CeFi options.

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For other terms not found in this list, check out [CoinMarketCap Glossary](https://coinmarketcap.com/alexandria/glossary).