Strategies

Liquidity provision

Liquidity provision on Metric: Kato lends a token pair to an oracle-priced pool and earns a share of the spread on every trade that crosses its liquidity.

Status

Live, stage 0
A small first position: about $150 in the META/USDG pool on Robinhood Chain since 27 Oct 2026. The stake grows a stage at a time, and only once the stage before has proved itself.

What it does

Metric pools price trades off an oracle instead of off their own balances. Liquidity sits in narrow price bins around the oracle price. When a trader buys or sells through a bin Kato holds, Kato takes the other side and keeps part of the spread. Metric calls that part Edge.

Only the bins that trades reach earn anything, so Kato keeps its liquidity close to the price: a few bins either side, each a few hundredths of a percent wide. The card on the home page draws them, with the pool's price as a dotted line.

Reading the figures

On MetricWhat the position would pay out if withdrawn now, at today's prices.
vs holdingMetric's own yardstick: the position against simply holding the tokens that went in. It includes the Edge earned and the cost of the inventory trades took from Kato. Positive means providing liquidity beat holding.
All timeThe position's value less the cash put in. A deposit is never counted as profit, and the treasury counts the position at its value.
Stage capHow much of the current stage's limit is in use.
Pool Edge APRWhat the pool has paid its liquidity providers over the last 7 days, annualized. It leaves out price moves.

The ramp

0 · plumbing$150, one poolOne deposit and one full withdrawal, and Kato's own valuation within 1% of the Metric app.
1 · pilot$1,000, two poolsHedged on Lighter. 7 days with hedged P&L at or above zero and no stop hit.
2 · scale$3,000, three pools14 more days of positive hedged P&L, and Edge at least half of the pools' posted rate.
3 · core$10,000, four poolsA month of positive hedged P&L.

Each step up is the owner's call. A position comes out when its pool turns unhealthy or when it falls 5% (or $50) behind holding.

Risks

The tokens in the pool move with the market, so the position's dollar value moves too. From stage 1 the asset side is shorted on Lighter, which takes most of that out. The position also earns Metric points, paid weekly; they have no known dollar value and aren't counted as profit.