Charm Finance
  • Charm Overview
    • The mission
  • Products Overview
    • Alpha Vaults
      • Whitepaper
      • FAQ
    • Charm Simulator
  • Provide Liquidity
    • Overview
    • The Benefits
    • Risks and Mitigants
    • Charm Vaults
    • Community Vaults
    • Conclusion
    • Fees
    • FAQ
    • User Guides
      • Home Page
      • Depositing and Withdrawing
      • Vault Information Page
      • Performance Page
      • Portfolio Page
  • Manage Liquidity
    • Overview
    • The Benefits
    • Challenges and Solution
    • Uses Cases
    • How it works
    • Risks and mitigants
    • Conclusion
    • Fees
    • FAQ
    • User Guides
      • Create Vault
        • Default Values
        • Next Steps
      • Vault Parameters
      • Rebalancing
      • Verifying Vaults
      • Capital Efficiency
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      • Best Practices
      • Walkthroughs
        • Create Vault
        • Edit Vault
        • Automating Rebalance
        • Verify Manager
  • Technical References
    • Overview
    • Core
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      • Interfaces
    • Periphery
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  • Links
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    • Medallion
      • Whitepaper
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      • Decentralised competition
  • Previous Products
    • Alpha Vaults v1
    • Charm Options
      • Key Features
        • Capital Efficiency
      • Use Cases
      • How trading works
      • How liquidity provision works
      • Trading Tutorials
        • Open a position
          • Notes
        • Close a position
        • Settlement
      • Liquidity Provision Tutorials
        • Provide liquidity
        • Withdraw Liquidity
    • Cube Tokens
      • How it works
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  1. Provide Liquidity

The Benefits

The benefits of providing liquidity on Alpha Vaults

PreviousOverviewNextRisks and Mitigants

Last updated 2 months ago

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.

Unlimited Choice

If a Liquidity Provider cannot find a vault, they can it themselves with 1-click.

High Performance

In addition to collecting fees, all vaults have a to reduce Capital Loss. This is the main reason for their consistent .

Cheap

Protocol are up to 98% lower than other liquidity managers, and deposit/withdraws fees are cheaper than Uniswap V3.

Complete transparency

Alpha Vault's performance charts, infrastructure, strategy, and fees, is 100% on-chain, and its code is .

This means anyone can verify how their deposits are being managed, and decide for themselves whether Alpha Vaults is the best option.

Safety

There were no security incidences since Alpha Vaults on 7th May 2021. It also received 3 , and has an ongoing Immunefi .

Diversify Portfolios

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.

Benchmark performance

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.

Alpha Vaults offers an number of vaults for any Uniswap V3 pool.

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