The Aegis Process

Process Flow Diagram (Text Description)

1. Initial State (Idle Assets)

• Treasury holds idle assets, typically in the form of the project's native token.

2. Diversification Initiation

• Treasury assets are deposited into an Aegis smart contract, utilizing two single-asset vaults:

• • Project Token Vault: Holds the project’s native token, trading against a liquid asset.

  • Liquid Token Vault: Contains the liquid asset, trading against the project’s token.

3. Liquidity Deployment

• Aegis deploys the deposited assets into concentrated liquidity positions on AMMs (e.g., Uniswap V3, Algebra) without triggering sell orders. This step enables the creation of liquidity in both vaults.

4. Revenue Generation

• The deployed assets begin generating revenue through trading fees and reward programs. As trading occurs within the liquidity pool, both project and liquid token vaults accumulate assets.

5. Asset Conversion

• When liquid token levels in the project token vault exceed a predefined threshold, Aegis migrates these tokens to the liquid token vault. This mechanism ensures optimal asset management and positioning on both sides of the price curve.

6. Final State (Revenue-Generating Instruments)

• The previously idle assets are now transformed into stable, revenue-generating instruments while extractable liquidity grows in the liquid asset vault.