Where does the yield come from?

Your profit (and our own profit) comes from various places as we diversify the funds to different sources in Web 3 to reduce risk and optimize the returns.

The world is constantly changing, so is the underlying strategies and the relationship we had with the top-tier blockchain networks and protocols that are built on the top of the networks.

We mostly allocate the capitals to the following strategies

• LP (15%)

  • We generate yield by providing liquidity to the partnered DEX while neutralizing the delta exposure (price risk) of the underlying assets via short positions in the risk assets (SOL, ETH, BTC)

• Web 3 Lending (15%)

  • We generate yield from fixed rate, overcollateralised loans to institutional borrowers. These short duration loans enable Sugar to provide consistent high yield and short term liquidity for users. This strategy has a track record of yield outperformance compared to most of the DeFi protocols.

• Quant Trading (70%)

  • Our battle-tested arbitrage techniques and experiences from quantitative finance and high-frequency trading brings mathematical rigor to maximize the returns and gives our clients a truly unfair advantage to others.

Most normal people don't know how to do any of these on their own.

At Sugar, we handle the complex nuts and bolts of the operations - managing the sophisticated systems behind the scenes - to deliver the sweetest yields, so you can sit back and enjoy life.