How protocol-owned liquidity (POL) is typically deployed
Token issuers typically deploy protocol-owned liquidity in one of three ways, with different tradeoffs across capital efficiency, operational overhead, and ongoing performance.| Full-range POL | Manual concentrated LP | Arrakis Pro | |
|---|---|---|---|
| Capital efficiency | Most capital idle | Drifts out of range | Always at the trading price |
| Operational overhead | None | Constant, hands-on | None for the team |
| Fee capture | Low | Variable | Maximized |
| Rebalancing | None | Manual | Automated |
| Lifecycle adaptation | None | Manual | Automatic |
Strategies
Arrakis Pro runs multiple strategies, each built for a specific use case. They transition automatically as the token matures.Bootstrap Strategy
For TGE and launches with skewed inventory (typically up to 95% project token). Accumulates ETH or USDC from buyer demand as the market trades through the position, avoiding the need for OTC deals or large quote-side treasury commitments. Auto-transitions to Flagship once the target inventory ratio is reached.
Flagship Strategy
For ongoing post-launch active management. Concentrates the position around spot in calm markets and widens the range as volatility rises. Dynamic fees adjust to market conditions. The default strategy after Bootstrap completes.
Treasury Diversification Strategy
For gradual conversion of project token into ETH or stablecoins over time. Passive concentrated liquidity around spot converts the project token as the market trades through, avoiding the price impact of market-selling or OTC discounts. Useful for treasury management once the token has matured.
Features
Hooks are Uniswap v4 features that add capability on top of any strategy. They are configured at vault deployment and run alongside the active strategy.- Price Convergence: Holds the pool price to an external reference feed. Used primarily by assets that track an off-chain price, such as RWAs.
- Dynamic fees: Adjust the fee tier to volatility and trading momentum, capturing more on volatile flow and less on quiet flow.
Launchpad integrations
For projects launching through a specific launchpad, Arrakis has dedicated migration or pre-deployment integrations.- Uniswap CCA: Migrates the CCA-seeded Uniswap v4 full-range position into an actively managed Arrakis vault in a single atomic transaction. Teams can engage before the auction or migrate after it completes.
- Aerodrome Ignition: Pre-launch vault deployment on Base. Runs Bootstrap through Epoch 1 to accumulate quote-side reserves as buyers enter the pool, then auto-transitions to Flagship through Epoch 2 to maintain depth as mercenary LPs rotate out.
- Binance Alpha: Active management of the official Alpha pool through the volatile launch window. Flagship-led, adapted to the program’s launch requirements.
Integration path
Pre-TGE teams typically engage 2-4 weeks ahead of TGE. Teams with existing pools can onboard at any time.Discovery
Initial conversation with the Arrakis team to discuss the token, launch profile (pre-TGE) or current pool state (post-TGE), and the strategy, hook, and launchpad combination that fits. Where useful, Arrakis runs an onchain liquidity analysis of the existing setup and simulates the improvement.
Configuration
Vault parameters confirmed: pool, fee tier, tick range, dynamic fee config, strategy schedule, optional hooks. For launchpad launches, launchpad-specific setup (pool gauge creation, voter contract whitelisting, and so on) runs in parallel.
Deployment
Arrakis deploys the vault on the chosen DEX and chain. Existing positions can be migrated atomically where the launchpad supports it (for example, the Uniswap CCA migration helper).
Self-custody
The vault NFT is owned by the team’s multisig or MPC wallet. The team owns the vault for its full lifecycle.
Integrate Arrakis
Talk to the Arrakis team about your TGE or existing token.
FAQ
How much capital should we deploy?
How much capital should we deploy?
Sizing depends on the token, the trading depth target, expected volume, and the chosen strategy. Pre-launch coordination includes a depth analysis to determine recommended deployment for the specific launch. Because Arrakis concentrates liquidity around the trading price, the same trading depth can be achieved with roughly 25% of the capital that a full-range position would require.
We already have a Uniswap or Aerodrome position deployed manually. Can we migrate?
We already have a Uniswap or Aerodrome position deployed manually. Can we migrate?
Yes. For Uniswap CCA positions, migration is atomic through the dedicated helper contract (see Uniswap CCA). For other manually managed v3 / v4 / Slipstream positions, the typical path is to withdraw the existing position and deposit into a freshly deployed Arrakis vault. Coordination with the Arrakis team determines the path based on the current setup, including options for zero-downtime migration where significant prefunding is possible.
Can we change strategy as our token matures?
Can we change strategy as our token matures?
Yes. Strategy parameters and the active strategy itself are reconfigurable at any time. Common transitions include Bootstrap → Flagship after initial inventory rebalances, or Flagship → Treasury Diversification when the team decides to convert project token to quote. Reconfiguration runs as an authenticated call from the vault NFT holder.
Who controls the funds throughout?
Who controls the funds throughout?
The team. Arrakis vaults are self-custodial. The team holds the vault NFT, which represents ownership of the underlying position. Arrakis runs the active management strategy, and changes to the vault’s core parameters are subject to a two-day timelock, so the team always has time to review or exit. The team can pause, reconfigure, or withdraw at any time.
What if we are not sure which strategy is right for us?
What if we are not sure which strategy is right for us?
The discovery step covers this. For most launches the strategy is determined by the launch profile: a TGE with skewed inventory points to Bootstrap, an existing balanced pool to Flagship, and a yield-accruing token to the Yield-Bearing Asset Strategy. For launches through a specific launchpad, the integration page covers the recommended setup (see Uniswap CCA, Aerodrome Ignition).
Can we run more than one strategy at once?
Can we run more than one strategy at once?
Yes. Teams often run several vaults in parallel, each with its own strategy, for example a Flagship vault for ongoing market making alongside a Treasury Diversification vault converting part of the treasury. Each vault is independent and self-custodial.