Krystal Vault Strategy Library

Moderate, Wide, Straddle, and Tight-Range profiles behind the DWC Krystal vaults.

Framework

The Krystal Vaults use a small set of repeatable range designs rather than one-off experiments. Each profile shapes how often a position is in-range, how concentrated fees are, and how actively it must be managed. Here we outline the four main patterns: Moderate Range, Wide Range, Straddle, and the Tight Range for correlated BTC/ETH-style pairs.

DWC-001 Pattern

Moderate Range

A band narrower than “wide” but not razor-thin. It aims to stay in-range through normal volatility while concentrating liquidity enough to make fee income meaningful.

Higher fee density than wide bands
Requires periodic monitoring and rebalancing
Suited for core pairs like WETH/USDC

DWC-002 Pattern

Wide Range

A more forgiving band designed to keep liquidity in play for longer stretches, even when price wanders. Fees are less concentrated, but time-in-range is usually higher.

Maximizes time in-range
Good for “set, monitor, adjust” cycles
Useful as a long-dwell reference vault

DWC-004 Pattern

Straddle Strategy

A band that sits between a tighter range and a wide band to add a third fee regime. It can stand alone or act as the “middle leg” of a three-part stack with moderate and wide bands.

Designed for blue-chip pairs (e.g., WETH/USDC)
Balances fee density with neutrality
Acts as the bridge between tight and wide

DWC-003 Pattern

Tight Range (Correlated Pair)

A narrow band used specifically for highly correlated pairs like cbBTC/WETH. It leans on the BTC–ETH relationship to keep liquidity active in a tighter window for higher fee density.

Paired with correlated BTC/ETH-style assets
Higher fee potential, more sensitive to divergence
Used in DWC-003 as a BTC (cbBTC) builder

Moderate Range Strategy

The Moderate Range band is our default “working” profile for core pairs like WETH/USDC. It is narrow enough that fees don’t get diluted across a huge price span, but wide enough that normal market swings don’t immediately push the position out of range.

Objective: Earn a meaningful fee rate while staying in-range across typical volatility.
Behavior: Performs best when price oscillates within a reasonable band rather than trending hard.
Management: Needs periodic check-ins and adjustments after sharp moves or extended trends.

This is the core pattern behind DWC-001 (Moderate Range WETH/USDC), which acts as a USDC fee engine in the Krystal Vault set.

Wide Range Strategy

The Wide Range band extends further above and below the current price. You sacrifice fee concentration in exchange for more time where the position is actually active. This is useful when you want a more observational, slower-paced vault.

Objective: Keep liquidity deployed through wider swings without constant hands-on management.
Behavior: Captures fees steadily across a broad band, with each unit of liquidity earning less per move than tighter ranges.
Management: Adjustments are less frequent and often tied to structural shifts rather than every short-term move.

This is the pattern behind DWC-002 (Wide Range WETH/USDC), a long-dwell USDC-principal vault that complements DWC-001.

Straddle Strategy

The Straddle gives us a third regime between Moderate and Wide on blue-chip pairs. Instead of choosing only “tight” or “loose,” the straddle occupies the middle zone and often works best when paired with other bands in a stack.

Objective: Capture fees in the mid-zone where price may hover between the core and outer bands.
Behavior: Helps smooth out earnings by continuing to work when the tight band is out of range but the wide band is underutilized.
Stack Role: Can be used as the middle leg in a three-band design: tight (or moderate) near spot, straddle in the mid-zone, wide further out.

In the Krystal Vault lineup, this concept appears in DWC-004 (WETH/USDC Straddle), where WETH is the principal token and the goal is ETH accumulation.

Tight Range for Correlated BTC/ETH Pairs

The Tight Range profile used in DWC-003 is reserved for pairs where we believe there is a strong relationship between the assets, such as cbBTC/WETH (a BTC–ETH style correlation). Because these assets tend to move in the same general direction, we can justify a narrower band than we would on a typical mixed pair.

Objective: Maximize fee density in a narrow corridor that reflects the BTC–ETH relationship.
Behavior: Works well when the pair oscillates around a moving equilibrium; more sensitive when BTC and ETH diverge sharply.
Principal & Framing: In DWC-003, principal is cbBTC and fees accrue in cbBTC, making the vault a deliberate BTC builder rather than a USD-yield play.
Usage: Not applied to every pool; reserved for correlated or structurally linked assets where narrow bands are defensible.

This is the profile behind DWC-003 (cbBTC/WETH Tight Range) inside the DeFi Lab, which is used as a live example of building BTC-denominated exposure over time.

What You Learn Here vs Inside the Courses

The Strategy Library is designed to give you a strong conceptual foundation for how these profiles behave. You can then watch the DWC vaults in the DeFi Lab and see the ideas play out in live positions.

Here: Concepts and patterns (what each profile is for and how it behaves).
In courses / member materials: Specific configurations, decision rules, and modeling for when and how to deploy each pattern.
Always framed as education so you can form your own views if you decide to interact with DeFi directly.

Educational Use Only.
These strategy profiles are presented for informational and educational purposes only. Digital WealthCraft does not provide investment advice, manage funds, or accept deposits. Any DeFi activity you choose to pursue is done independently and directly through the underlying protocols.