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Everything you need to know about auto-rebalance & auto-compound to optimize yield risk vs returns
How does Auto-rebalance work?
Auto-rebalance is a Hawksight feature that automates the management of liquidity positions within a liquidity pool (LP). It strategically adjusts the distribution of assets between different tokens in a liquidity pool to maintain an optimal position within the market’s price range. Auto-rebalancing ensures your position is in-the-money, continuously generating yields from token trading volume & fees.
What happens when the token price drops below the range? (Example: SOL-USDC)
In a SOL-USDC liquidity pool, if the market price of SOL drops below the minimum predefined price range, the auto-rebalance feature triggers due to the position being out of range and not generating yield from fees. In this scenario, your USDC is partially converted into SOL reflective of SOL's decreased value. Autorebalance repositions your LP position to be within a range that remains active to generate yield.
What happens when the token price spikes above the range? (Example: SOL-USDC)
In a SOL-USDC liquidity pool, if the market price of SOL rises above the maximum predefined price range, the auto-rebalancing feature triggers due the position being out of range and not generating yield from fees. In this scenario, your SOL is partially converted into USDC, reflecting SOL’s increased value. Autorebalance repositions your LP position to be within a range that remains active to generate yield.
Should I use Default or Customized Price Ranges?
If you are a beginner, we suggest using Default Price Ranges, which are optimized for yield based on the token’s historical performance (Disclaimer: Past performance is not always a good indicator of future performance, so please review & understand the Safety & Risk Factors displayed for each yield strategy).
If you are an experienced DeFi user, you can customize your own price range based on your expectation of price movements, customize rebalancing strategies, and even transparently simulate potential risk & returns on HawkAI
We highly recommend joining the Hawksight community Discord to (https://discord.com/invite/7ZDVwAaqWk) to learn more from peers about different LP strategies from custom price ranges, auto-rebalancing, and auto-compounding.
Tradeoffs of Wide vs. Narrow vs. Asymmetric Price Ranges Wide price ranges provide more resilience against market volatility by having a larger spread of potential price movements. This broader approach leads to less frequent rebalancings, offering a stable, but potentially lower yield as liquidity is distributed over a wider price range.
Narrow price ranges provide concentrated liquidity that usually results in higher APY yields due to higher fee accrual from efficient & focused liquidity providing. However this comes with higher risk of LP positions being out-of-range due to price volatility (especially when token prices are volatile), which could mean more frequent rebalancing and possibly result in greater exposure to impermanent/divergence loss.
Asymmetric Price Ranges is a customized strategy when users intentionally skew price ranges to be broader on one side (higher range on the upside to capture price spikes, or lower on the downside if expecting a price dip). This advanced approach helps liquidity providers continually generate fees by protecting against token price decreases or capturing upside of token price increases.
Impermanent Loss or Divergence Loss
Impermanent loss occurs when the relative price of assets in a liquidity pool diverges from the price at the time of deposit. Although termed 'impermanent,' it can become a realized loss if the position is rebalanced or withdrawn at these divergent prices (especially token price is out-of-range from the initial LP price range). In detail, it occurs when the price ratio of the tokens in a liquidity pool diverges from the ratio at the time of deposit. This divergence primarily stems from significant price changes in one or both of the pool's tokens — the larger the price shift, the greater the potential loss.
Impermanent loss or divergence loss can be mitigated by
Liquidity providing in Wide or Asymmetric price ranges (See Tradeoffs of Wide vs. Narrow vs. Asymmetric Price Ranges above), especially for tokens with volatile price action
Monitoring token price action for potential volatility or significant price action, while making sure (or customizing) LP positions are comfortably within range of token price action
As a beginner, focusing on LP’ing in stable pools instead of volatile pools (Hawksight has a Filter function for Stable vs Volatile pools). Stable pools have lower risks of impermanent loss because the token pool ratios typically have a stable value and are often tied to each other. (However please remember to also read the Safety & Risk Factors of each strategy to have a full understanding of the risks vs. return of each yield strategy.)
How does Auto-compound work?
Auto-compound in Hawksight is a feature that automatically reinvests trading volume fees or rewards back into your position. By doing so, the compounding effect should enhance overall returns on the liquidity provided. It's a hands-off approach that allows liquidity providers to benefit from the cumulative growth of their return.
Can I turn off Auto-compound?
Our contributors are currently prioritizing & working on this feature. Announcements coming soon.
Opening positions in Concentrated Liquidity Pools are associated with certain risks and should be understood before depositing!
Impermanent Loss / Divergence loss
The difference in value of an existing position in a liquidity pool VS the value had the position been held
The difference in the number of tokens of an existing position in a liquidity pool VS the number of tokens had the position been held
Price exposure to the underlying tokens
Within a position, when either of the tokens go down in value, the value of the position also goes down, and when either goes up in value, the value of the position should go up
The price exposure experienced skews towards token B when price moves to the upper limit, and towards token A when moving to the lower limit
Rebalancing risk
During a rebalance (e.g. when price moves out of range), a swap via Orca is automatically performed which realizes the experienced price increase / decrease (2), and the impermanent loss (1)
This swap can experience slippage as well, which can be larger for lower liquidity pools, and larger swaps
Everything you need to know to get started with Hawksight
Hawksight Wallet: Self-custodial interface within Hawksight for managing your tokens and rewards.
Wallet: Wallet interface with your wallet address interacting with the pool. Currently supporting Phantom and Backpack wallets.
Track Wallet Performance (After Depositing): Allows you to monitor the real-time performance of your deposited tokens within the liquidity pool.
Default Price Range: Suggested price range within which your liquidity position is likely to perform best.
Custom Min/Max Price Range: User-customized limits for the liquidity pool position. Users can set tighter ranges to concentrated liquidity & yield, or set wider ranges to anticipate for bigger or directional token price fluctuations
Minimum Price: minimum price of your liquidity pool position
Maximum Price: maximum price of your liquidity pool position
Auto-rebalance: Let Hawksight automatically adjust your liquidity pool (LP) position based on token price action, to make sure LP is in-the-money and generating yield
Auto-swap Deposit: Automatically convert your deposit into the required tokens & ratio for the liquidity pool at optimized rates, powered by Jupiter.
Estimated Yield: Estimated yield to receive from depositing in the liquidity pool
Slippage: Potential percent price difference allowance between the auto-swap deposit - based on available liquidity.
Auto-rebalance: Let Hawksight automatically adjust your liquidity pool (LP) position based on token price action, to make sure LP is in-the-money and generating yield
Auto-rebalance Rules:
Outside of Price Range: Triggers rebalancing of your position when the market price moves outside your predetermined price range.
Periodic: Triggers rebalance after a set number of periods(days) have passed.
Simple Moving Average Crossover (SMAC): Rebalances when the short-term simple moving average (fast) crosses the long-term average (slow).
Exponential Moving Average Crossover (EMAC): Rebalances when the short-term exponential moving average (fast) crosses the long-term average(slow).
Rebalance Width: Determines the range around the current price where your position will be rebalanced like:
Percentage of Price: A specified percentage of the current price.
Symmetric: Maintains equal distance from the current price for both the minimum and maximum range.
Average True Range (ATR): Based on the volatility metric using the 14-day moving average of price highs and lows.
Try in LP Simulator: Simulates potential returns and risks from the liquidity position with HawkAI, based on historical data and your chosen strategy parameters.
APY Breakdown: Displays the expected annualized percentage yield from the liquidity pool, including base returns and incentives.
Activity Log: Records and displays all actions taken within your Hawksight account, such as deposits, withdrawals, rebalancing, and earnings.
Safety & Risk Factors: Lists potential risks and considerations to be aware of when participating in the liquidity pool, including features in beta.
Hawksight is a concentrated liquidity yield optimizer for active liquidity providers (LPs) on Solana, with self-custodial & automated market making strategies.
Earn yield from 250+ automated LP strategies that autocompound, autorebalance, and are transparently simulated by HawkAI (http://hawkai.xyz/)
Our DeFi app integrates & automates yield-generating DeFi protocols including but not limited to: token lending, NFT lending, AMM liquidity providing, and most notably, Concentrated Liquidity Marketing Making (CLMM).
Hawksight takes a data-driven approach in empowering DeFi users to optimize CLMM yield.
HawkAuto Boost
Auto-compounded yield
Auto-rebalanced CLMM price range
Boosted APY
Exclusive token incentives from protocol partnerships
Easily personalizing risk-adjusted yield. For example:
Enhancing risk-adjusted APYs by concentrating LP positions in wide or narrow price ranges
Making delta-neutral, bullish, or bearish positions on tokens by adjusting LP positions to be symmetric or asymmetric (skewed towards higher or lower prices.)
Hawksight's ecosystem has two key products:
HawkAI (http://hawkai.xyz/): Analytics tool to discover CLMM alpha by simulating yield strategies to track profitability & impermanent loss.
Hawksight DeFi app (https://www.hawksight.co/): Concentrated liquidity yield optimizer for active LPs on Solana, with self-custodial & automated market making strategies
One-Stop Shop: Earn optimized yield across Solana DeFi with Hawksight's 250+ self-custodial & automated marketing making strategies from autocompounding, autorebalancing, and personalized CLMM strategies.
Flexible Deposits and Withdrawals: Deposit any amount to start earning yield. Claim rewards and withdraw your funds anytime! No minimum deposits or lockups!
Secure & Self-Custodial: Hawksight's decentralized architecture of vaults keeps depositors in full control over their funds. Hawksight is battle-tested through internal audits and multiple external audits (CertiK & Sec3).
Hawksight ensures the highest level of security by conducting multiple internal and external smart contract audits, and plans to integrate DeFi insurance protocols to further protect against smart contract risks:
Hawksight is a concentrated liquidity yield optimizer for active liquidity providers (LPs) on Solana, with self-custodial & automated market making strategies.
Hawksight only charges a Yield Performance Fee of 5%. There is no (0%) deposit or withdrawal fee.
This means users only get charged on the yield earned (not the principal deposit).
There are no minimum deposits or maximum withdrawals when using Hawksight as it is our mission to democratize DeFi.
You can withdraw your funds from any Hawksight at any time! When depositing into Hawksight vaults, we automate the processes needed to execute DeFi Strategies AND keep you in control of your funds! Withdraw it at any time or amount that you please!
The value of your Hawksight Vault holdings is dependent on the prices on the market and fluctuates along with it.
A vault is a smart contract built by Hawksight built for one purpose: to automate DeFi Strategies to earn you yield on your assets. DeFi natives use multiple protocols to earn yield on their assets through interest, yield farming, and price appreciation. Hawksight users can do this with their assets too all with 1-click!
The prices of the underlying tokens used in the Hawksight DeFi strategies are dependent on the market and can cause the value of your holdings to change at any given moment.
Hawksight integrates DeFi yield strategies with security & safety as top priorities. To further mitigate Solana smart contract risks, Hawksight has also conducted internal and external smart contract audits with Sec3 and CertiK.
Please find below the prioritized safety scoring system and risk considerations for DeFi yield strategies integrated with Hawksight. We will be updating our vault page user-interface to reflect each relevant safety scoring for each corresponding yield strategy:
Higher market capitalization assets have lower volatility due to better liquidity. The assets in this vault have higher liquidity, which makes their stable value more reliable.
Single asset yield strategies do not risk impermanent loss (IL) from divergence in asset values like in dual-asset yield strategies.
Assets in this vault are stable assets that are tightly and positively correlated, with low or zero expected divergence causing impermanent loss (IL).
Reputation, track record, and duration of existence are relevant factors when considering DeFi platforms to engage with. This vault integrates a DeFi protocol with a known track record in the Solana ecosystem.
Low-complexity strategies have simpler code that is easier to read and debug. There is a direct correlation between code complexity and strategy risk. Simpler strategies mitigate such risks.
This vault integrates a DeFi protocol with smart contracts reviewed by a trusted auditor. Audits do not fully guarantee that all bugs and exploits will be avoided, however they do help improve code quality and avoid security flaws.
This vault integrates a DeFi protocol with code published and verified on public block explorers.
Bridged assets carry more risk of potential cross-chain bridge exploits that could affect asset values
TLDR: Hawksight automatically autocompounds & rebalances for Solana active liquidity providers (LPs) to optimize yield. You can simply deposit in default price ranges & strategies. Or if you are an experienced DeFi user, you can customize your own price range based on your expectation of price movements, customize rebalancing strategies, and even transparently simulate potential risk & returns on HawkAI
Link to Hawksight security dashboard on CertiK:
Earn yield from 250+ automated LP strategies that autocompound, autorebalance, and are transparently simulated by HawkAI ()
The maximum token supply of $HAWK is capped at 5,000,000,000 tokens.
In particular, it is highlighted that $HAWK: (a) does not have any tangible or physical manifestation, and does not have any intrinsic value (nor does any person make any representation or give any commitment as to its value); (b) is non-refundable and cannot be exchanged for cash (or its equivalent value in any other digital asset) or any payment obligation by the Company, the Distributor or any of their respective affiliates; (c) does not represent or confer on the token holder any right of any form with respect to the Company, the Distributor (or any of their respective affiliates), or its revenues or assets, including without limitation any right to receive future dividends, revenue, shares, ownership right or stake, share or security, any voting, distribution, redemption, liquidation, proprietary (including all forms of intellectual property or license rights), right to receive accounts, financial statements or other financial data, the right to requisition or participate in shareholder meetings, the right to nominate a director, or other financial or legal rights or equivalent rights, or intellectual property rights or any other form of participation in or relating to Hawksight, the Company, the Distributor and/or their service providers; (d) is not intended to represent any rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss; (e) is not intended to be a representation of money (including electronic money), security, commodity, bond, debt instrument, unit in a collective investment scheme or any other kind of financial instrument or investment; (f) is not a loan to the Company, the Distributor or any of their respective affiliates, is not intended to represent a debt owed by the Company, the Distributor or any of their respective affiliates, and there is no expectation of profit; and (g) does not provide the token holder with any ownership or other interest in the Company, the Distributor or any of their respective affiliates.
To the extent a secondary market or exchange for trading $HAWK does develop, it would be run and operated wholly independently of the Company, the Distributor, the distribution of $HAWK and Hawksight. Neither the Company nor the Distributor will create such secondary markets nor will either entity act as an exchange for $HAWK.
Solana DeFi x NFT
12.5% of Hawksight protocol fees* will be used to buyback HAWK and stake into xHAWK
This 12.5% of xHAWK will be rewarded to upgraded NFT holders who use (deposit & yield on) Hawksight
The amount of xHAWK rewards distributed to each wallet is directly proportional to the following factors:
Total yield earned on Hawksight
Total fees paid on Hawksight
Total number of upgraded NFTs
Rarity of NFTs
*Protocol fees are total fees (not yield) generated by Hawksight protocol from users, which is currently:
0% of Deposits
0% of Withdrawals
5% of Yield Performance (Subject to change based on market conditions)
Token buybacks & (retroactive & ongoing) reward distribution will start early January 2024
In the coming weeks, Hawksight will announce more HAWK tokenomics, accrual value & utility updates, which will further drive the growth of Hawksight's token and DeFi x NFT ecosystem. Stay tuned in our socials!
Will rewards be retroactive for DDH NFT holders who have been actively using Hawksight and upgraded the NFTs? Yes. We would like to reward and are deeply grateful for early users of Hawksight and DDH NFT holders who stuck with us throughout our journey in building a leading DeFi app on Solana, and eventually all-of-crypto.
Are rewards only distributed to upgraded DDH NFT holders who deposit & use Hawksight's DeFi app? Yes. This is how we empower Solana active LPs via DeFi x NFT and democratize access to DeFi - by rewarding and incentivizing NFT holders to grow DeFi adoption.
Do only upgraded DDH NFTs get these updated benefits? Yes. As a long-term focused project, Hawksight constantly evolves to adapt to market conditions and user behaviors over time, which is why the Degen Hawks NFTs were upgraded (into PFPs) with new benefits to replace the old card NFTs with outdated utilities.
How do I upgrade DDH NFTs from the old card NFT to PFP NFTs? Visit https://upgrade.hawksight.co/ to upgrade the card DDH NFT using $HAWK tokens (You can upgrade max. 5 NFTs per transaction). 2,000 HAWK is needed to upgrade each NFT (Price is subject to adjustments or hikes over time).
Note: Details in this Gitbook are subject to change as the team & contributors constantly gather feedback, adapt to market conditions, and improve the protocol ecosystem. Rest assured, we will always make utmost effort to communicate future updates in a timely & transparent manner. Please do stay tuned in our socials and community.
Tensor: https://www.tensor.trade/trade/debonair_degen_hawks
Magic Eden: https://magiceden.io/marketplace/debonair_degen_hawks
Everything you need to know about earning yield on your $HAWK token
Stake $HAWK to earn yield on your $HAWK tokens. When you stake $HAWK, you receive xHAWK in exchange as a yield-bearing asset.
When you eventually unstake xHAWK, you are entitled to receive more $HAWK than you initially deposited. No rewards-claiming or additional steps required, simply stake your $HAWK and hold your xHAWK to earn more $HAWK!
2. Connect your wallet that holds $HAWK tokens
3. Input the amount of $HAWK tokens you want to stake and click “Stake”
4. Click "Approve", confirm the transaction in your wallet, and wait a few seconds. When you see the pop-up that’s it, you’re done! Congratulations, you are now earning yield on your $HAWK tokens!
Whats is xHAWK token? xHAWK token represents your $HAWK token staking claim in the staking vault.
How do I claim my token staking rewards? You can claim your token staking rewards by providing your xHAWK tokens and clicking ‘Unstake’. When you unstake your xHAWK, you will receive more $HAWK tokens than what you initially deposited.
Do I need to claim rewards everyday? You do not need to 'claim' your $HAWK token rewards every day. Token rewards will be accumulated automatically over time.
What is the equivalent of 1 xHAWK to HAWK? The equivalent of 1 xHAWK will be determined by a formula based on the prevailing APY rates for $HAWK yield. The equivalent xHAWK is always greater than 1 $HAWK.
Will there be a lock-up period for staking my $HAWK tokens, if so, how long? There will be no lock-up period, and you can unstake your $HAWK tokens anytime.
What are is minimum and maximum number of $HAWK tokens to stake? There is no minimum and maximum amount of $HAWK to stake.
How can I unstake my xHAWK? xHAWK tokens represent your $HAWK token staking claim in the staking vault, which can be used to unstake your $HAWK tokens and claim rewards. There is no unstaking option for xHAWK.
How much is the staking fee? Zero. There is no staking fee, you just need to pay for Solana network fees.
What will happen to xHAWK after I use it to unstake my $HAWK tokens? The xHAWK will be burned when you exchange them back and receive $HAWK tokens.
How can I calculate the APY? The price of xHAWK over a 365-day period is determined by the prevailing APY rate.
Can I use my Ledger for staking? Yes, you can use Ledger
Name | % | Amount | Vesting Schedule | Wallet Address (SPL) |
---|---|---|---|---|
Fundraise (20%) | % | Vesting Schedule |
---|---|---|
In other words, upgraded NFT holders earn back 12.5% of fees from their own Hawksight deposits, AND additionally earn 12.5% of fees from non NFT holders who use Hawksight
What is the utility & benefits of HAWK or xHAWK? More announcements coming soon in the next few weeks, leading up to early January 2024.
Go to Hawksight staking page ()
Foundation (Incentives for product development & integration)
25%
1,250,000,000
(Strict lock-up, only for strategic initiatives)
7EXrrw7LhEEifeXAavgFLCdd6nNGhzYzrdQsiFu7aro1
Ecosystem Incentives (Incentives for user growth)
30%
1,500,000,000
(Strict lock-up, only for strategic initiatives)
BMZ8ynFP278X8tV313RbHNFzrQMs9G5M9MTuNnZNPLEc
Team & Contributors
25%
1,250,000,000
25% - after 2 year cliff
75% - 3 year linear vesting
6jrDmAupbMdprGSmb84oAHqpR9eqU7aKz7iX6GDN3B1N
Fundraise & Liquidity
20%
1,000,000,000
See Table below
4Nzj9oaFwygXz4hzwTNxSw6PycvqosLEHUpDJr72E7XR
Seed Round (with Solana Ventures)
13
5% unlocked at approx. TGE + 3 days
12-month cliff (locked), followed by 6 month 95% linear vesting
Public sale & Liquidity
1.2%
CEXes & DEX launch, for maximized trading volume & price action
Liquidity
1.8%
-
Reserves for Future Liquidity & Strategic Rounds
4%
-
We are a globally distributed team of 10+ builders across backgrounds in AI, data science, quant finance, software-as-a-service, and Web3 - and are backed by globally recognized partners including:
Leading crypto funds: Solana Ventures, NGC Ventures, Solar Eco Fund, One Block Capital, Petrock Capital Skyvision Capital, Everest Ventures Group, Doublepeak, Entrepreneur First, Global Founders Capital, Follow The Seed, and Cherubic
CEOs of leading projects: Norbert Bodziony (Synthetify), Ming Wu (Strips Finance)
Strategic DApps, Exchanges, and platforms: Bybit (Mirana), Gate Labs, CSP DAO
SOL Big Brain — and his recently launched VC fund (Congratulations!): Big Brain Holdings
🐣 Website: https://hawksight.co/
🦅 Debonair Degen Hawks NFT: https://www.tensor.trade/trade/debonair_degen_hawks
👾 Discord: https://discord.gg/7ZDVwAaqWk
💙 Twitter: https://www.twitter.com/hawksightco
📲 Telegram: https://t.me/hawksight
$HAWK token's accrual value will be primarily driven by token buybacks fueled by Hawksight protocol fees, in order to align with the long-term sustainable growth of Hawksight's DeFi app together with value creation for $HAWK tokens.
$HAWK token utility will expand as Hawksight progressively decentralizes. In subsequent phases after $HAWK token accrual value is established, we will experiment on more $HAWK utilities such as decentralized governance, incentives, and product & growth initiatives to grow the Hawksight & $HAWK ecosystem.
The native digital cryptographically-secured token of Hawksight ($HAWK) is a transferable representation of attributed governance and utility functions specified in the protocol/code of Hawksight, and which is designed to be used solely as an interoperable utility token on the platform.
$HAWK is a non-refundable functional utility token which will be used as the medium of exchange between users of Hawksight in a decentralized manner. $HAWK will provide convenient and secure mode of payment and settlement between users who interact within the ecosystem on Hawksight, and it is not, and not intended to be, a medium of exchange accepted by the public (or a section of the public) as payment for goods or services or for the discharge of a debt; nor is it designed or intended to be used by any person as payment for any goods or services whatsoever that are not exclusively provided by the issuer. $HAWK does not in any way represent any shareholding, participation, right, title, or interest in the Company, the Distributor, their respective affiliates, or any other company, enterprise or undertaking, nor will $HAWK entitle token holders to any promise of fees, dividends, revenue, profits or investment returns, and are not intended to constitute securities in Singapore or any relevant jurisdiction. $HAWK may only be utilized on Hawksight, and ownership of $HAWK carries no rights, express or implied, other than the right to use $HAWK as a means to enable usage of and interaction within Hawksight.
With regards to decentralized governance, $HAWK will allow holders of $HAWK to propose and vote on on-chain governance proposals to determine future features of Hawksight (the right to vote is restricted solely to voting on features of Hawksight; it does not entitle $HAWK holders to vote on the operation and management of the Company, its affiliates, or their assets or the disposition of such assets to token holders, and does not constitute any equity interest in any of these entities, and the arrangement is not intended to be any form of joint venture or partnership).
$HAWK also provides economic incentives which will be distributed to encourage users to contribute to and maintain the ecosystem of Hawksight, thereby nurturing a win-win scenario for every stakeholder. $HAWK is an integral and indispensable part of Hawksight, because without $HAWK, there would be no incentive for users to expend resources to participate in activities or provide services for the benefit of the entire ecosystem on Hawksight. Given that additional $HAWK will be awarded to a user based only on its actual usage, activity and contribution on Hawksight, users of Hawksight and/or holders of $HAWK which did not actively participate will not receive $HAWK incentives.
Once governance is established, it is the community members who would maintain and drive development of Hawksight, so $HAWK token incentives would need to be distributed to compensate them for their time, expertise and effort. Only users who have participated in submission of proposals, commenting, reviewing and/or voting will be entitled to receive $HAWK token governance rewards.