DWC-001 | “The Correlation Engine

🧭 DWC-001 | “The Correlation Engine”

🎯 Purpose

The Correlation Engine is Digital WebCraft’s inaugural public vault — a live demonstration of disciplined liquidity design that converts asset correlation into steady, sustainable yield.

Deployed on Aerodrome’s Slipstream DEX on Base, it provides liquidity to the cbBTC/WETH 5 bps pool using four nested ranges that balance fee generation, in-range time, and minimal impermanent loss.

⚙️ Strategy Overview

The cbBTC/WETH pair reflects the historically strong correlation between Bitcoin and Ethereum.
Instead of chasing directional volume, this vault captures consistent fees from mean-reverting oscillations within a structured, four-band framework:

Band	± % Width	Range (cbBTC/WETH)	Role	Allocation
Kicker	± 3.5 %	0.03222 – 0.03457	Captures short bursts	10 %
Tight-Moderate (TM)	± 6.5 %	0.03123 – 0.03557	Primary yield engine	30 %
Moderate (M)	± 9 %	0.03039 – 0.03640	Core balance layer	35 %
Moderate-Wide (MW)	± 13.5 %	0.02890 – 0.03790	Outer defense band	25 %
Total	—	—	—	100 %

Center Price: 0.0334 cbBTC per WETH (≈ 29.9 WETH per cbBTC)
At this midpoint, portfolio composition is roughly 50 / 50 by value.
Displayed ranges are the vault’s initial deployment settings; they may evolve through standard rebalancing.

🧩 Operational Parameters

Setting	Specification
Auto-Rebalance	ON
Auto-Compound	ON (rebalance-only)
Auto-Exit	OFF
Overlap	1 – 2 % between bands
Rebalance Delay	Kicker 72 h OOR • Others 168 h OOR
Fee Floor	≥ 0.04 % since last rebalance
Bias	Neutral (≈ 50 / 50 composition at center)
Compounding Trigger	Fee floor + time threshold met

📊 Performance Rationale

High Uptime on Aerodrome: The cbBTC/WETH 5 bps pool maintains strong slipstream routing volume and deeper liquidity than the equivalent Uniswap v3 pool on Base. This environment supports consistent fee accrual even at a low fee tier.
Low Impermanent Loss: Both assets move together most of the time, keeping the position centered and reducing IL risk.
Fee Efficiency: The vault compensates for a smaller fee tier by maintaining near-constant in-range exposure and minimizing churn through delayed rebalancing.
Educational Value: Illustrates how structural range discipline and asset correlation can create sustainable yield at low fees.

🛠 Management Notes

This is a fully allocated strategy — 100 % of capital is active inside the bands.
Reserve capital for future expansion or maintenance resides in the Digital WebCraft DeFi Reserve.
Rebalance logic follows the Time-Reversion Hybrid (TRH-168) model: only after sustained out-of-range period and fee confirmation.

⚠️ Risk Disclosure

Providing liquidity in DeFi involves market and protocol risk.
Impermanent loss may occur if prices diverge beyond outer bands.

Digital WebCraft strategies are educational demonstrations and do not constitute financial advice. Perform independent due diligence before participation.

📜 Methodology Disclosure

Parameters shown reflect the vault’s initial configuration for educational clarity.

Digital WebCraft may adjust ranges, allocations, and rebalance conditions within its proprietary framework.
Internal signals and automation logic remain confidential.

🔗 Vault Access

View Vault on Aerodrome (via Krystal)
Read Full Vault Methodology (PDF)

Shortlink for Krystal comment: dwc.li/cbbtcweth-mod (replace with final URL once live)

🧾 Krystal Vault Comment (≤ 255 chars)

DWC MODERATE 4-Band: Neutral cbBTC/WETH (± 3.5/6.5/9/13.5 %) on Aerodrome 5 bps. Built for steady yield + low IL in correlated pair. Auto-rebalance; compound on rebalance. Learn: dwc.li/cbbtcweth-mod

Summary of this revision

✅ DEX = Aerodrome (Slipstream on Base)
✅ Fee tier corrected to 0.05 % (5 bps)
✅ Performance section updated to reflect lower fee environment and volume profile
✅ All wording harmonized for public posting and vault comment

Would you like me to generate the matching internal registry entry (CSV row) next, reflecting the Aerodrome 5 bps configuration?

DWC-001 | “The Correlation Engine