FAQ
What are the differences between Alpha Vaults and other liquidity managers?
Alpha Vaults is:
The easiest to use.
Provide and manage liquidity with 1-click. There is no need to pick a range or build your own LP Strategy.
The biggest supplier of LP Vaults.
Vaults are available for ANY Uniswap v3 pool, because LPs can create a vault if they cannot find it elsewhere.
The cheapest.
Fees are up to 90% lower than other liquidity managers. Gas fees for deposit and withdrawal are cheaper than Uniswap V3.
The best performing.
Alpha Vaults has consistently outperformed. It has generated excellent liquidity and LP performance, after all impermanent loss and realised losses.
The safest.
There were no security incidences since Alpha Vaults was first launched on 7th May 2021.
The most transparent.
Alpha Vaults's code, performance metrics, and fees are verifiable on-chain.
Self-custody.
Only depositors can withdraw funds from the vault, and all vaults belong to the wallet that created it.
The complete solution.
The Alpha Vaults web app offers everything that's needed to provide and manage liquidity.
What are LP Vaults?
Uniswap V3 have higher Capital Efficiency and Fee Income, but is inconvenient to use and has higher risk of Capital Loss. An LP Vault overcomes these challenges by interacting with Uniswap V3 on behalf of users. The best LP Vaults:
Make full use of concentrated liquidity to increase Capital Efficiency for traders, and increase Fee Income for Liquidity Providers.
Are easy to use, both for Liquidity Providers, and for liquidity managers.
Offer protection against Capital Loss.
Are operated on-chain, just like Uniswap itself.
Are secure and reliable.
Are sustainable on low commission fees.
Alpha Vaults is the first, the longest running, and the only protocol that can create LP vaults with all the above properties.
Why should I provide liquidity?
Providing liquidity is an excellent way to:
Earn Fee Income. By providing liquidity, you will earn fees from the trading activities on decentralized exchanges (DEXes). Alpha Vaults is the easiest way to provide liquidity.
Diversify portfolios. By providing liquidity, investors can access a new asset class (ie LP Shares) whose source of returns (ie trading fees) are uncorrelated with the market, because trading fees are generated when prices go up or down. Alpha Vaults have an unlimited supply of LP Vaults to help investors capture trading fees in different ways.
Prior to DeFi, these benefits were not available to most investors because liquidity provision have been centralized by market makers such as Citadel, Jump, and Jane Street.
DeFi opens up the benefits of liquidity provision to everyone, and the Alpha Vaults super app is the first to bring all the benefits in one place.
Why should I use an LP vault?
LP Vaults:
Provide an easy way for LPs to earn yields. They just need to deposit into the vault and withdraw at any time.
Create liquid markets using less funds, which means projects can launch tokens or products quickly and cheaply.
Simplify liquidity management by selecting positions on behalf of the user.
Decentralize liquidity management by bringing all aspects of liquidity management on-chain.
Alpha Vaults is the easiest way to create and use LP Vaults.
Why is liquidity management important?
Anyone can innovate using DeFi's open architecture, and liquidity management create new markets for the innovations so that they can be launched quicker, cheaper, and enjoyed by more users.
Liquidity management can:
Increase the liquidity of project tokens, so that projects can get the funding they need to innovate.
Increase the liquidity of the innovations themselves.
Alpha Vaults is the easiest way to manage liquidity.
Is liquidity management hard?
No.
Liquidity management is very easy using Alpha Vaults, because anyone can do it with 1-click.
Since launching the first LP Vault in 2021, Alpha Vaults:
Automatically selected over 1000 ranges on behalf of the user.
All ranges were chosen on-chain, without any human intervention.
Consistently outperformed, both in terms of liquidity concentration, and in terms of LP returns.
Did not have any downtime or security incidences.
Last updated