How to Use Vaults
For complete step-by-step instructions on depositing and withdrawing assets, please refer to the tutorial here.How the Strategy Works
At its core, each vault manages liquidity through dynamic range positioning. The vault deploys user capital into concentrated liquidity positions and continuously adjusts those positions based on real-time market data.Initial Positioning
When a vault is first funded or rebalanced, it establishes a predefined liquidity range. This range is determined by the vault’s strategy parameters and can be asymmetric, allowing the system to bias liquidity toward the side of the current price where higher fees and utilization are expected. The initial range is set to balance capital efficiency with risk exposure for the specific pool and market conditions.Adaptive Range Expansion
The vault’s backend continuously monitors price movements relative to the current liquidity range. As the price approaches either boundary of the active range, the system automatically expands the liquidity range in that direction. This adaptive expansion achieves three key outcomes:- Keeps liquidity active and earning fees for longer periods.
- Reduces impermanent loss by responding to volatility in real time instead of allowing positions to drift out of range and crystallize losses.
- Smooths exposure to price movements during rapid market shifts.
Gradual Range Narrowing
When market volatility decreases and the price stabilizes within the range, the strategy does not immediately tighten the position. Instead, it gradually narrows the liquidity range over time. This controlled narrowing optimizes capital efficiency by concentrating liquidity where trading activity is occurring, while avoiding the risks associated with sudden repositioning.Volatility-Aware Behavior
The vault strategy is designed to respond intelligently to changing volatility levels. During periods of high volatility, the system reacts faster and expands the range more aggressively to prevent the position from going out of range. In extreme volatility scenarios, the vault can temporarily pause liquidity management. This safeguard protects user capital from inefficient rebalancing, excessive gas costs, or unfavorable slippage during turbulent market conditions. Once volatility subsides to acceptable levels, the vault automatically resumes normal operations.Risk Boundaries
Each vault operates within strict predefined minimum and maximum tick limits. These absolute boundaries are set at the strategy level to enforce downside protection and execution risk control. If the asset price reaches either the minimum or maximum tick limit, the vault automatically stops all liquidity management activities and holds positions until the price returns within acceptable bounds or the strategy is manually resumed through governance.Key Benefits
- Hands-off experience: Users deposit once and receive automated, professional liquidity management with no ongoing monitoring or manual intervention required.
- Adaptive to market conditions: The system dynamically responds to price movements and volatility in real time.
- Capital-efficient: Liquidity remains active and in-range for longer periods, maximizing fee capture compared with static positions.
- Risk-aware design: Built-in volatility controls and hard risk boundaries protect capital during adverse conditions.