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The LP Agent allocates across three underlying LP Vaults, each targeting a distinct Aerodrome Slipstream pool. The keeper selects the active vault based on effective APR.

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Allocation Pools

PoolTick SpacingPosition RangeNotes
USDC/cbBTCCL200±10%Bitcoin pair, higher volatility
USDC/AEROCL200±10%AERO native token pair
WETH/USDCCL100±5%ETH pair, moderate volatility
All three pools price USDC as one side of the pair. When the agent reallocates, funds move through USDC — no cross-asset exposure is held between reallocation steps.

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Effective APR

Each vault’s effective APR is calculated from the raw gauge emission rate adjusted for position width. A tighter range concentrates liquidity and captures a larger share of both trading fees and gauge rewards per dollar deployed. The keeper uses effective APR (not raw APR) to determine when reallocation is worthwhile.

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Reallocation Trigger

The keeper checks APR every minute. Reallocation triggers when another vault leads by more than 5% APR across 5 consecutive readings (~5 minutes). This filters out short-lived spikes while staying responsive to genuine shifts. After a reallocation, a 30-minute cooldown prevents oscillation. Only one vault is active at a time — the LP Agent does not split liquidity across multiple pools.

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Underlying Vault Mechanics

Each pool is managed by an independent AerodromeLPVault contract that handles:
  • Minting and staking the CL position NFT in the Aerodrome gauge
  • Rebalancing when the price moves outside the tick range
  • Compounding AERO rewards and trading fees back into the position
See LP Vaults — How It Works for full details on position management.