Alpha Vaults are automated LP Vaults for Uniswap V3
Alpha Vaults are the easiest way to provide liquidity on Uniswap V3. They are the first V3 LP vaults to launch, and also the longest running, most stable, and the highest returning LP vaults of its kind.
The techniques introduced by Alpha Vaults have been used by many practitioners to manage their liquidity.
Why are Alpha Vaults needed?
Managing liquidity on Uniswap V3 can be tricky. For example if LPs deposit $1000 of ETH and $1000 of USDC and the price moves, their position will no longer be balanced in a 1:1 ratio. They will have to rebalance it - i.e. remove the liquidity, swap one token for another and add the liquidity back.
Alpha Vaults does this all automatically, saving LPs time and gas fees! Moreover, quantitative research is also being conducted to improve the underlying strategy and ensure Alpha Vaults can continue to outperform the benchmark and other vaults.
Key Features
  1. 1.
    Higher yields using the new concentrated liquidity feature in V3.
  2. 2.
    Automatically rebalances so that your inventory remains balanced. LPs don’t have to worry about managing their position — they can just leave their deposit in the vault.
  3. 3.
    Executes rebalance passively using range orders to avoid swap fees and price impact.
  4. 4.
    Automatically collect trading fees from the Uniswap pool.
  5. 5.
    Vault shares are represented as ERC-20 tokens so are composable and fungible.
  6. 6.
    Saves LPs a ton of gas. A tiny amount of gas fees only have to be paid when entering/exiting the vault.
What makes Alpha Vaults different from other liquidity managers?
Alpha Vaults is able to outperform other Uniswap V3 liquidity managers due to its strategy and execution. It rebalances passively to receive (rather than pay) Uniswap's 0.3% swap fee*, avoid price impact, and MEV extraction.
*This fee might sound small, but if it's rebalancing frequently, avoiding this fee can have a huge impact on LP performance.
More details can be found in How the strategy works.
How do I use Alpha Vaults?
Go to alpha.charm.fi, select a vault and deposit the two tokens. The deposit amounts will be in the same ratio as the current holdings of the vault - so they won't necessarily be in a 1:1 ratio.
How well does Alpha Vaults perform?
What fees are charged?
5% of the fees from Uniswap go to the Charm treasury, used to cover the vault's running costs. In the future, this protocol fee can be modified by Charm token holders.
Is Alpha Vaults audited?
Yes. Charm was audited by Certik with no major findings. The audit report is available at https://www.certik.org/projects/charmfinance
In addition, Charm also has a bounty with Immunefi to ensure its code is constantly monitored by the security community. Further details are at https://immunefi.com/bounty/charm/
Where's the Github repo?
Is there a bug bounty?
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