How it works

Fig 1 - Alpha Vaults deposits liquidity into 3 range orders on Uniswap V3

Alpha Vaults manages liquidity using 3 Liquidity Positions: a Full-Range Position to guarantee tokens can always be traded and reduces LP risks, a Base-Order to Concentrate Liquidity, and a Limit-Order to reduce Capital Loss.

By changing the vault's Strategy Parameters, Liquidity Managers can choose how much liquidity to concentrate, how the vault reduces Capital Loss, and how much Liquidity there will be when tokens trade Out-of-Range. These parameters can be changed at any time.

After setting the parameters, a single call will trigger the vault to choose new Liquidity Positions. This process can be fully automated.

Track record

Fig 2 - On-chain data shows that for 2+ years, Alpha Vaults kept the market price (red line) within the middle of the ranges (blue region) chosen by the vault.

Since May 2021, Alpha Vaults chose over 1000 Liquidity Positions on behalf of the Liquidity Manager.