🔐Vault Specs
Actively Managed ETH-USDC Vault on Camelot v3
1. Introduction
An actively managed vault that manages liquidity across three ranges for the ETH-USDC pair to optimize yields while minimizing impermanent loss.
2. Core Features
2.1. Liquidity Management
Concentration: Liquidity will be concentrated within three ranges to optimize for frequent price movements.
Rebalancing: The vault will actively monitor price movements and adjust liquidity ranges to ensure they remain optimized.
2.2. Fee Collection
Automatic: Fees accrued from providing liquidity are automatically collected.
Redistribution: Fees are converted and distributed to vault participants based on their share.
3. Active Ranges
Near Range: Covering small price fluctuations, optimized for the most frequent price movements.
Medium Range: Covering moderate price fluctuations, balancing yield and capital utilization.
Far Range: Covering major price swings, acting as a safeguard and capturing larger market moves.
4. Mechanism
Entry/Exit: Users can deposit ETH and USDC into the vault. Upon exit, they receive their principal plus any accrued yield.
Rebalancing Algorithm: An algorithm will periodically analyze price trends and volatility to adjust the ranges. This might include:
Price oracles for accurate price data.
Historical data analysis for determining price movement patterns.
The frequency of rebalancing can be set (e.g., daily, weekly) based on optimization results and gas considerations.
Emergency Withdraw: In extreme market conditions, the vault should be able to halt new deposits and allow for emergency withdrawals.
5. Security
Audits: The vault's smart contracts should undergo rigorous security audits from reputable firms.
Admin Keys: Multisig governance for any admin functionalities.
Oracle Reliability: Multiple price oracles to prevent single points of failure.
6. User Interface
Dashboard: A clear dashboard showing the current liquidity distribution across ranges, accrued fees, and user's share.
Historical Data: Graphs to depict historical performance, yields, and rebalancing actions.
Transaction History: Users can view their deposit, withdrawal, and reward claim transactions.
7. Fee Structure
Performance Fee: A percentage of the yield (e.g., 10%) taken as a performance fee.
Withdrawal Fee: A small fee (e.g., 0.5%) for withdrawals to cover gas costs and discourage frequent exits.
No Deposit Fee: To encourage liquidity provision.
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