# Strategies

## Overview

XAX operates a delta-neutral strategy trading vault designed to generate consistent, risk-adjusted returns across various market conditions.

XAUSD dedicated to **delivering Real Yield through Delta-neutral strategies**, prioritizing capital allocation over future point-farming speculation.

* **Onchain Liquidity Yield Farming**
* **Arbitrage**
* **Institutional-grade execution**
* **Risk-adjusted deployment**

XAX is not designed for directional investment. As such, it remains market-neutral and generates returns through the following methods, regardless of market conditions.

* **Basis trading**
* **Liquidity Provision**
* **Market inefficiencies**
* **Arbitrage**

## Strategy Drivers

XAX deploys capital across three key strategy drivers:

1. **Onchain Liquidity Farming**
2. **Funding Rate & Basis Arbitrage**
3. **RWA Stock Trading**

XAX manages capital through a dynamic allocation framework, strategically shifting assets between sub-strategies in response to market shifts. This expert-led approach optimizes capital efficiency based on real-time liquidity and risk-adjusted return.

**Objective**

Liquidity Farming strategy is designed to :

* Market-Agnostic Yield Capture
* Capital Efficiency through Leveraged Hedging
* Capturing Profits from On-chain Structural Inefficiencies
* Principal Robustness

**Structure**

The strategy operates thorough :

**Liquidity Deployment**

* Concentrated Provisioning
* Adaptive Range Management
* Yield Source Diversification

**Hedging & Neutralization**

* Real-time Delta Neutralization
* Dynamic Execution Logic
* Cross-Venue Balancing

**Yield Performance Optimization**

* Real Yield
* Automated Harvest & Compound
* Incentive Arbitrage

**Risk Management & Safeguards**

* Exposure & Inventory Limits
* Volatility-Based De-risking
* Automated Kill-Switches
* Venue Diversification


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