TRUSS LP vaults
Benchmarks
TRUSS LP is measured on the return from providing liquidity, not on a bet on either token. Every vault's P&L page shows three numbers.
Three numbers
| Number | Compared with |
|---|---|
| Net P&L | — (absolute): what the vault is worth now, plus what you took out, minus what you put in. |
| vs HODL | Simply holding what you deposited, never trading it. |
| vs REBAL | Holding the bot’s own token mix, reset every time the bot trades, but paying no swap costs and earning no emissions. |
vs REBAL shows what the liquidity position itself added: broadly, the emissions it earned less what it lost to price movement and swap costs. vs HODL also includes the effect of trading at all, which helps in sideways markets and hurts in trending ones. If one token doubles while the other stays flat, holding wins.
We don’t take views on token direction. If you want directional exposure, holding is the right tool. TRUSS LP is for earning a return from providing liquidity.
Why LP loses to volatility
Inside its range a liquidity position sells the token that is rising and buys the one that is falling. That is the loss to volatility, and the emissions are the payment for taking it. When volatility gets too high for a position to pay, the vault goes out of pool until conditions improve.