$24.5B in DAO treasuries sit idle because LP means impermanent loss. IL Alpha turns LP off when it's dangerous. Sharpe 3.66. Max Drawdown -12%.
DAO treasuries want LP-level yields (15%+), but governance can't approve a strategy where 49.5% of participants lose money. Every competing LP manager keeps positions in the pool during volatility. We remove them entirely.
On-chain EWMA volatility oracle tracks variance on every swap. When it exceeds the threshold, the keeper bot removes LP entirely. Re-enters when conditions normalize. Zero off-chain dependencies.
Real ETH/USDC price data from January 2024 to March 2026. Full market cycle covering both bull and bear regimes. Key metrics for governance proposals:
⚠️ Caveat: backtest results, not guaranteed. fee_share 0.5% is assumed — real ratio depends on TVL. Testnet control group data will provide real-world validation.
DAOs don't LP because of impermanent loss. We solve that.
| Alternative | Yield | Risk |
|---|---|---|
| Hold stablecoins | 0% | None |
| Aave/Compound | 4-5% | Low |
| Lido/stETH | 6-8% | ETH price risk |
| Raw LP (Uniswap) | 15-30% | 49.5% lose, DD -45% |
| IL Alpha Vault | 15%+ | Sharpe 3.66, DD -12% |
| Stage | TVL | Perf. Fee | Mgmt. Fee |
|---|---|---|---|
| 1. Launch | < $5M | 10% | 0% |
| 2. Growth | $5–20M | 15% | 0.5%/yr |
| 3. Established | > $20M | 15–20% | 1%/yr |
Stage 1: performance fee only. If we don't make money, you don't pay. Trust is earned through data.
Bunni — the previous V4 hook LP leader — died in September 2025 after an $8.4M exploit. They couldn't afford audit and monitoring costs to relaunch. The slot is open.
Lesson: (1) rounding errors in liquidity accounting are real threats (2) audit budget $50–150K is non-negotiable (3) simpler design = smaller attack surface.
Key metrics for your governance proposal:
We provide governance proposal drafts with testnet performance data, risk analysis, and benchmark comparisons. Performance report after 4-week monitoring period.
Three vaults running head-to-head under identical conditions. Request a treasury assessment.