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Arrakis Pro’s Flagship strategy actively manages onchain liquidity for mature token markets so deep liquidity around the spot price is automatically maintained as market conditions change. Token issuers can minimize slippage and continue to earn fees without manual rebalancing. The Flagship Strategy is mostly used by teams undergoing or having done a Token Generation Event, assuming they already have a certain percentage of quote assets (for example USDC or ETH) available to pair with their project token. If the team does not have any quote assets yet, they should usually start with the Bootstrap Strategy first and then later transition into the Flagship strategy. The strategy adapts continuously to market volatility. In calm markets, liquidity tightens around the spot price to maximize fee capture. As volatility rises, the strategy widens its positions and reduces exposure to protect capital. These shifts happen automatically.

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How it works

The team deposits its tokens into an Arrakis vault on a supported DEX and chain and configures the target inventory ratio (typically 50/50). The strategy continuously measures market conditions and deploys liquidity across multiple concentrated positions around the spot price. The position layout adapts to current volatility:
Market conditionHow the strategy responds
🟢 CalmConcentrates liquidity tightly around the spot price, providing the best trade execution while earning fees.
🟡 Moderate volatilityWidens its positions to protect the vault’s inventory.
🔴 High volatilityWidens positions further to reduce exposure and protect the vault’s inventory.
The strategy builds the position from up to three range types:

Base Range

A wide range holding the core liquidity, so large orders trade with minimal price impact.

Bootstrapping Range

A narrow, limit-order-like range that works inventory back toward the target ratio.

Mid Range

A tight range at the spot price that adds deep liquidity for average-size orders in calm conditions.
The strategy rebalances automatically on three triggers: when the price moves beyond a threshold, when the inventory ratio drifts from target, or when sustained volatility calls for wider or tighter positioning.
TWAP protection. All rebalances are checked against a TWAP (time-weighted average price) that blocks responses to short-lived price spikes, protecting the vault against price manipulation and preventing the strategy from reacting to noise.
When inventory drifts from target (typically because the market has moved through most of the deployed liquidity in one direction), the strategy widens positions and pulls back deployed capital. The remaining inventory stays protected while organic flow brings the ratio back toward target. The team can pause, reconfigure, or withdraw at any time.

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Considerations

Performance scales with trading volume.

Flagship earns fees from trades that pass through its liquidity. In low-volume markets, fees accrue more slowly.

The strategy reduces but does not eliminate impermanent loss.

Flagship widens positions and pulls back capital during volatile periods, which limits exposure to large directional moves. LP positions still produce impermanent loss through large moves relative to holding the underlying tokens directly. The strategy mitigates the magnitude rather than removing the risk.

TWAP protection slows reaction to fast moves.

The same check that blocks rebalances during suspicious price spikes can also slightly delay responses to genuine fast moves. This tradeoff favors safety over speed.

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FAQ

The strategy continuously measures market volatility and adjusts its positioning as conditions change in a sustained way. It responds to shifts that hold up over time, not short-term spikes, so it does not react to every brief volatility burst.
No. Once the vault is configured, the strategy operates fully automatically, without the team’s intervention. The team can monitor performance through the Arrakis Pro dashboard and pause, reconfigure, or withdraw at any time.
The strategy widens positions and reduces deployed capital as volatility rises. Volatile two-way price action is the worst case for any concentrated LP strategy. Flagship dampens that exposure but does not remove it: LPs still take some impermanent loss when prices move sharply.
Yes. The vault’s positions, fees earned, and inventory are visible onchain at any time and can be viewed on the Arrakis Pro dashboard.
A self-managed full-range position spreads capital across the entire price curve, earning a small share of fees from every trade, and most of the capital is never used productively. A self-managed concentrated position earns more fees per dollar when the price is in range, but stops earning when the price moves out and requires manual rebalancing to restore. Flagship combines concentrated liquidity with automated rebalancing: it captures fees consistently as the market moves, with no need to monitor or act. The tradeoff is that automation requires trust in the strategy’s logic, which is why Flagship operates within bounded risk levels and uses TWAP protection on every rebalance.