Vaults (Concentrated Liquidity)

Overview

Our Concentrated Liquidity vaults are centered around a strategy that deposits the users funds into a Supercharged pool on Osmosis and dynamically updates the range that the liquidity is provided to optimise the yield potential.

The Problem: Active Management

Osmosis introduced Supercharged Pools which brought Concentrated Liquidity (CL) to Cosmos (similar to Uniswap v3). Unlike traditional balancer pools, these pools let LPs set a price range for providing liquidity, avoiding the inefficiencies of distributing liquidity across a full range. Learn more about CL here. The issue is that when price moves out of the users range they do not receive fees and rewards. This requires them to actively management their position which is not possible for most users. In fact, 85% of users have never adjusted their positions and over 50% of users were at some point out of range.

The Solution: CL Vaults

Users can deposit into one of our Concentrated Liquidity vaults and the vault will actively rebalance the Supercharged Pool position with the help of independent off-chain computation and automatically execute the updates. This access to off-chain data provided by an independent team, Define Logic Labs (DLL) who collect, analyze, and monitor on-chain and off-chain data relevant to the CL pool and provide signals transmitted to the vault. This unique aspect ensures the position is continuously optimised for the best possible yield.

We offer three strategies:

• Stable Plus (S+): These vaults avoid impermanent loss by pairing two assets with the same delta. This means their prices move together. By eliminating exposure to IL, users experience direct exposure to an asset they like while generating yield on top. They will usually have an extra tight range in the underlying CL position.

• Aggressive Plus (A+): These vaults pair two uncorrelated assets and aim to generate high yield that can overcome, in the medium term, any impermanent loss experienced due to tightly ranged concentrated liquidity. They will usually have a tight range in the underlying CL position.

• Moderate Plus (M+): These vaults pair two uncorrelated assets and aim to find the balance between competitive yield, impermanent loss management, and delta exposure to the underlying assets. They will usually have a tight range in the underlying CL position.

Choosing the right liquidity range maximizes rewards but comes with risk. Our vaults manage concentrated liquidity positions effectively, as explained in our blog.

Deposits & Withdrawals

User will need to deposit both related assets into the vault in the ratio that is shown at the that time. When a user deposits assets, the vault creates a new position for the user that follows the current position informed by the strategy. In essence, the vault is handling one large concentrated liquidity position which all depositing LPs automatically follow. Soon, multi-range liquidity position will go live.

Withdrawals are instant as there is no bonding mechanism involved in concentrated liquidity and the user funds are sent straight to the users wallet. Note that the withdrawals will be executed in the asset ratio at that time and may be different to the ratio at the time the user deposited

Claiming Rewards & Boost

All rewards earned by the user in the vaults position are claimable by the user from the vault page (our from the users "My Dashboard" page). Simply click the "Claim Rewards" button. In the near future this will be replaced but Autocompounding which will swap teh rewards and deposit them back into the position for the user.

Many CL vaults may have a Quasar Boost campaign running in which case the user can also claim these at any time by clicking the "Claim Boost Rewards" button on the vault page.