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Arrakis Pro’s Treasury Diversification strategy allows token issuers to gradually convert project tokens into stablecoins or ETH over time, avoiding negative price impact, using organic market demand instead of market-selling or OTC discounts. The strategy deploys passive concentrated liquidity around the token’s spot price. Conversions happen as organic buying volume routes through the DEX liquidity, never by initiating sales. Treasury Diversification differs from Bootstrap in what happens to the converted quote and how it ends. Bootstrap deploys the full inventory and keeps the quote it captures in the pool, spread around the price, building toward a balanced position that graduates to Flagship near a 50/50 ratio. Treasury Diversification releases the project token to the market in small batches and removes the quote from the pool as it is captured, holding it in the vault. It runs to a defined end, converting the targeted project token fully into the quote asset rather than graduating to ongoing management.

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How it works

The team deposits a number of its project tokens into an Arrakis vault on a supported DEX and chain. Those tokens are deployed as single-sided concentrated liquidity across multiple positions around the spot price. Small positions sit close to the market for gradual conversion with minimal local price impact. Larger positions sit further out to capture upside price spikes. As the market trades through any position, that portion of tokens converts into the quote asset, which is removed from the pool and held in the Arrakis vault. The vault repositions automatically as spot moves, keeping the configured distribution intact, so each new market buy converts some project tokens into the quote asset. The team can pause, reconfigure, or withdraw at any time.

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Considerations

Pace is bounded by market activity.

Conversions only happen when the market trades through the positions. In a low-volume market, diversification takes longer. Configuring the strategy more aggressively converts faster but at lower average prices.

Limit orders follow market price.

Limit orders can be configured to follow the market price and fill at average prices on upside movements.

The position is visible onchain.

A sophisticated observer could read the position distribution from the vault. For most teams this is a positive: the community can verify exactly what the strategy is doing.

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FAQ

No. The liquidity is passive: it sits in the AMM and converts only when the market trades through it, never by initiating sales. Position sizes near spot are kept small, so any single conversion is tiny relative to market volume. Larger positions further out capture upside spikes when they happen, locking in higher prices during rallies.
Diversification time depends on the configuration and organic trading volume. In a moderately liquid market, conversion plays out over weeks to a month, not days. More aggressive configurations fill faster at lower average prices, while slower configurations preserve prices but take longer.
Behavior during drawdowns is configurable. Some teams configure the strategy to follow spot down, converting small amounts at new lower price levels rather than waiting indefinitely. Average-priced conversion can outperform sitting on the sidelines if the market does not recover. Others configure the strategy to pause when prices fall below a certain threshold and resume only on recovery. The team can request configuration changes at any time.
A TWAP market-sells the tokens on a fixed schedule, taking whatever price the market gives at each interval and taking existing liquidity from the market. An OTC deal converts at a single negotiated discount to spot in a private transaction. Treasury Diversification is passive and adds liquidity instead: liquidity is deployed in an AMM and converts only when the market trades through it. It takes longer than a TWAP and is less predictable than an OTC sale, but avoids the price impact of market-selling and the discount of a private deal.
Yes. The position distribution, allocation targets, and pace are all reconfigurable. The vault is the team’s, and the strategy parameters can be adjusted as market conditions evolve.