This proposal outlines a potential shift in the STARV4 Automated Trade Liquidity Pool Network structure.
Recently, as much as 30% of the StarSeeds Protocol s STARV4 Liquidity has been held in a portfolio of highly volatile small cap tokens with exceptional upside and limited downside. These tokens are mostly deployed in wide range (0.1 - 0.01% coefficient depth), ultra-high fee (2-4%) DodoX Liquidity pools.
While the fee based return from these alt coin-STARV4 pools has been exceptional, with APYs averaging over 200%, the losses from portfolio rebalancing during major movements offsets a significant amount of the returns. Furthermore during periods of extreme growth, most of the potential profits are lost due to nature of concentrated liquidity.
As such I recommend that the StarSeeds Protocol migrate all altcoin-STARV4 DodoX Liquidity to Quickswap/UNIV2 LPs.
By doing so, the upside from the Protocols altcoin portfolio will become unlimited while simultaneously reducing the downside risk and rebalancing fees associated with concentrated liquidity.