The benefits of providing liquidity on Alpha Vaults
Easy to use
Alpha Vaults is the easiest way to provide liquidity.
LPs don’t have to chose a range or manage their position — they can just leave their deposit in the vault and withdraw at any time.
If a Liquidity Provider cannot find a vault, they can create it themselves with 1-click.
In addition to collecting fees, all vaults have a mechanism to reduce Capital Loss. This is the main reason for their consistent outperformance.
Vault fees are up to 90% lower than other liquidity managers, and deposit/withdraws fees are cheaper than Uniswap V3.
Alpha Vault's performance charts, infrastructure, strategy, and fees, is 100% on-chain, and its code is open-source.
This means anyone can verify how their deposits are being managed, and decide for themselves whether Alpha Vaults is the best option.
There were no security incidences since Alpha Vaults first launched on 7th May 2021. It also received 3 audits, and has an ongoing Immunefi bounty.
By depositing into an Alpha Vault, depositors will 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.
LP Shares are therefore an excellent way to diversify portfolios.
Alpha Vaults offers an unlimited number of vaults for any Uniswap V3 pool.
The vaults can therefore be used to benchmark any actively managed LP Strategy, similar to how index investments (eg the S&P500) are used to benchmark actively managed funds.