Default Values
Default values are taken from Alpha Vaults v2's live track record over 12 months, the pre-release track record over 5 months; and v1's track record over 2+ years.
The purpose of the default values is to illustrate how to create vaults using Alpha Vaults. It is for information purposes only, and should NOT be used to indicate future performance.
Default values illustrate how the vault can automate two of the most common categories of LP Strategies:
Wide-Range Strategy
Wide Range strategies have lower risk, and are often used to generate long term returns with lower volatility. They are useful for earning organic yields.
Wide-range strategies set a wide range for the Liquidity Position. In general, they have:
Lower Capital Loss
Require less rebalances (therefore lower gas fees)
Less volatile LP Returns
Lower Capital Efficiency
Lower Fees Income.
Alpha Vaults executes Wide-Range strategies by setting a wide Base Order and Limit Order, a long Rebalancing Period, and low % of liquidity in Full-Range.
To help users get started, the following default values are provided as a starting point:
Base Width - 5400
Limit Width - 12000
Rebalancing Period - 518400
Full Range Liquidity - 20%
The default values for Wide-Range Strategy are chosen from the live track record, and pre-release track record of Alpha Vaults v2.
The outcome of the default values are summarised in the tooltip next to each value:
The default values can be changed in the fields above, by pressing Vault Parameters, or in Edit Vault after a vault have been created.
Narrow-Range Strategy
Narrow Range strategies often have high returns but high risk. Its performance is highly volatile. They are useful for rewards farming.
Narrow-range strategies set a narrow range for the Liquidity Position. In general, they have:
Higher Fees Income.
Higher Capital Efficiency
More volatile LP Returns and capital efficiency
Higher Capital Loss
Require more rebalances (therefore higher gas fees)
Alpha Vaults executes Narrow-Range strategies by setting a narrow Base Order and Limit Order, a short Rebalancing Period, and more % of liquidity in Full-Range.
To help users get started, the following default values are provided as a starting point:
Base Width - 3600
Limit Width - 1200
Rebalancing Period - 172800
Full Range Liquidity - 30%
The default values for Narrow-Range Strategy are chosen from the track record of Alpha Vaults v1.
The outcome of the default values are summarised in the tooltip next to each value:
The default values can be changed in the fields above, by pressing Vault Parameters, or in Edit Vault after a vault have been created.
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