🏦Vaults
Last updated
Last updated
Concentric Vaults are concentrated liquidity vaults that are optimized for fee collection and reduced IL. These vaults are powered by strategies that continuously seek out the best returns, adjusting positions based on factors such as potential yield, the risk profile of the assets, and the stability of the liquidity pool. ETH-USDC will be Concentric's first vault. The strategy is based on implied volatility calculations over short-term periods. Using daily, 7-day, and 30-day IV, Concentric can effectively create vaults where underlying assets are expected to fall within the range for a longer period of time, and LP's then book impermanent loss much less frequently.
These vaults allow users to deposit their assets and sit back while the protocol works. It eliminates the need for users to constantly monitor and manage their positions, providing a more passive and streamlined investment experience. Additionally, the vaults are designed to protect against impermanent loss and other risks associated with liquidity provision.
Each Concentric Vault acts as an autonomous yield-generating machine, powered by intricate smart contract systems. At the heart of each vault is a strategy contract, which outlines a specific series of actions for maximizing the yield of a particular asset.
A user will deposit into a Concentric vault in one click, where the underlying smart contracts will deposit liquidity to the underlying AMM. To Begin, Concentric will deposit all liquidity to Camelot V3 as spNFT's, which are then wrapped into an ERC-20 receipt for the user.
When a user deposits their assets into a Concentric Vault, these assets are effectively pooled together with assets from other users. The pooled assets are then collectively managed based on the vault's underlying strategy. The pooling mechanism allows for economies of scale and provides an efficient way to execute strategies, as actions can be performed on the whole pool rather than on individual accounts.
Concentric Vaults are designed with user-friendliness in mind. They are accessible to all users, irrespective of their experience level with DeFi. A user only needs to deposit their assets into the vault of their choice, and the vault will take care of the rest. The user interface provides users with clear information about the performance of each vault, allowing users to make informed decisions about where to deposit their assets.
By leveraging these smart-contract operated vaults, users can maximize their yield and reduce their exposure to risks, making Concentric Finance an attractive option for both newcomers and seasoned DeFi users.
In essence, Concentric Vaults serve as a hands-off solution for users looking to maximize their yield in the DeFi space. They combine the power of advanced algorithmic strategies with the convenience of automatic and passive yield generation, all while emphasizing security and risk management.
