> For the complete documentation index, see [llms.txt](https://samurai-cipher-token.gitbook.io/samurai-cipher-token-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://samurai-cipher-token.gitbook.io/samurai-cipher-token-docs/the-retrodrop-strategy.md). # The Retrodrop strategy The Retrodrops strategy is one of the key investment areas of Samurai Cipher Token and is designed to generate profitability through participation in promising blockchain protocols at the early stages of their development. The main goal of the strategy is to receive rewards in the form of tokens, points, allocations, and other forms of encouragement from projects that may later host a Token Generation Event (TGE), airdrop, or reward distribution program for early adopters. The strategy is focused on systematic work with various segments of the cryptocurrency industry and combines active interaction with protocols, liquidity management, arbitrage operations and participation in testing new ecosystems. The main directions of the Retrodrop strategy are shown in Figure 2 below.
**Figure 2 - Diagram of the main directions of the Retrodrop strategy** #### **Allocation of investment capital** All funds allocated to the Retrodrops category are distributed among the five main areas, as shown in Figure 2.1.
**Figure 2.1 - Diagram of the distribution of the investment capital of the Retrodrop strategy by category.** #### Perpetual DEX (Perp DEX) 40% of the capital of the Retrodrops strategy is allocated for this area. The strategy focuses on working with decentralized Perpetual Decentralized Exchanges, which actively use the system of accrual of points and retrodrops. The main areas of activity are: * Accumulation of points. * Formation of trading volume. * Participation in protocol reward programs. **Delta-neutral strategy** This strategy minimizes market risk by compensating for long and short positions. Includes the following sub-strategies: * Pharm funding * Obtaining profitability through positive financing Rates in the perpetual contracts market. * Receiving points used by projects to determine future recipients of airdrops and awards. **Arbitrage Strategies** Arbitrage operations are used both to generate additional profits and to generate trading activity within the protocols. Includes the following sub-strategies: * CEX ↔️ DEX Arbitration (Arbitration between centralized and decentralized exchanges). * DEX ↔️ DEX Arbitration (Arbitration between various decentralized exchanges and protocols). #### Prediction Markets 25% of the capital of the Retrodrops strategy is allocated for this area. The strategy focuses on participation in decentralized prediction markets and prediction protocols. The main areas of work are: * Delta-neutral strategies. * Minimizing market risk by hedging open positions. * Getting points. * Accumulation of user points, reputation and activity, which can be used by projects in the distribution of future airdrops and tokens. This direction allows us to participate in the development of one of the fastest growing segments of the crypto industry. #### DeFi 20% of the capital of the Retrodrops strategy is allocated for this area. The category includes a wide range of strategies for working with decentralized financial protocols. Main directions: * Borrowing and lending. Using Lending and Borrowing protocols to generate activity, accumulate points, and receive rewards. * Depeg Strategy. Strategies aimed at exploiting temporary deviations of linked assets from their target values. * Interest rate arbitrage. Obtaining profitability due to differences in borrowing and lending rates between different protocols. * Farming with hedging. Obtaining profitability from liquidity farming while reducing market risk through hedging. * Stable-Stable LP with protection against non-permanent losses. Placement of liquidity in stablecoin pools with additional mechanisms to protect against Impermanent losses. #### Testnets 10% of the capital of the Retrodrops strategy is allocated for this area. The strategy is aimed at early participation in the testing of new blockchain ecosystems. Main directions: * New Layer 1 networks. Participation in test networks of promising first-level blockchains. * EVM-compatible networks. Participate in testing new ecosystems compatible with the Ethereum Virtual Machine (EVM). * The purpose of the referral is to obtain the status of an early user and participate in possible token distribution programs after the launch of the main network. #### AI & More 5% of the capital of the Retrodrops strategy is allocated for this area. The category covers promising areas that go beyond traditional DeFi protocols. Main segments: * Infrastructure projects. Protocols that create the basic infrastructure for future blockchain ecosystems. * AI projects. Platforms and services operating at the intersection of artificial intelligence and blockchain technologies. This category allows you to access new trends in the cryptocurrency industry at the early stages of their development. #### Roles and social capital Working with social roles, reputation, and activity within project ecosystems is a separate area that covers all categories of retrodrops. The main objectives of the direction are: * Obtaining special roles in Discord and other communities. * Participating in ambassador programs. * Obtaining early user status. * Participating in closed tests and loyalty programs. * Interacting with project teams and ecosystem initiatives. The presence of roles and statuses is often one of the factors in the distribution of future airdrops and additional rewards. Additionally applied to all directions. #### Profit generation The profitability of the Retrodrops strategy is formed by: * Receiving airdrops. Distribution of tokens to early users. * Receiving points and then converting them into rewards. * Participation in testnet and closed project development programs. * Arbitrage operations. * Getting returns from delta-neutral strategies. * There are no additional rewards or bonuses. #### Profit sharing The net profit received as a result of the sale of tokens, airdrops and other rewards of the Retrodrop strategy is distributed as follows: 80% is used to buy back the Samurai Cipher Token (SCT) from the open market as part of the Buyback mechanism. 20% goes to Treasury to finance new investment directions and ecosystem development. #### The purpose of the Retrodrop strategy The Retrodrops strategy is a highly diversified system of participation in promising cryptocurrency projects at the earliest stages of development. The combination of Perp DEX, Prediction Markets, DeFi, Testnets, and AI projects allows you to cover a wide range of potential sources of airdrops and rewards, while reducing dependence on the success of individual protocols. The profit earned is used to form a sustainable SCT token Buyback mechanism, replenish the project's coffers and further expand the ecosystem's investment activities. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://samurai-cipher-token.gitbook.io/samurai-cipher-token-docs/the-retrodrop-strategy.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.