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LP Vaults are automated concentrated liquidity positions on Aerodrome Slipstream pools. Users deposit USDC and a keeper service manages the underlying CL position — handling rebalancing, compounding, and staking automatically.

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How It Works

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1. Deposit

Deposit USDC into an LP vault. You receive internal vault shares representing your pro-rata ownership of the vault’s position.

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2. Position Management

The keeper manages a single concentrated liquidity position per vault:
  • Splits USDC into the two pool tokens at the optimal ratio based on the current price
  • Mints a CL position within the configured tick range
  • Stakes in the Aerodrome gauge to earn AERO emissions

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3. Auto-Rebalancing

When the pool price moves outside the position’s tick range, the keeper:
  1. Unstakes from the gauge
  2. Removes all liquidity
  3. Swaps tokens back to USDC
  4. Recalculates the optimal range around the current price
  5. Mints a new position and re-stakes
This ensures the vault is always earning trading fees and gauge rewards.

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4. Auto-Compounding

When accumulated AERO rewards exceed the compound threshold:
  1. Claims AERO gauge rewards
  2. Takes 10% performance fee (sent to treasury as USDC)
  3. Swaps remaining AERO to USDC
  4. Collects any trading fees from the position
  5. Adds all idle USDC back into the position as additional liquidity
When idle USDC accumulates from new deposits or trading fees, it’s automatically added to the position without waiting for AERO rewards.

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5. Withdrawal

Withdraw USDC at any time. The vault:
  1. Calculates your share of totalAssets
  2. Removes proportional liquidity from the position if needed
  3. Swaps non-USDC tokens back to USDC
  4. Transfers USDC to your wallet

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Fees

90% of the AERO performance fee is used to buy $N0IR.

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Slippage Protection

All swaps within the vault use on-chain slippage protection calculated from the pool’s current spot price. Each swap has a minimum output enforced based on the vault’s tick spacing: This protects deposits, withdrawals, compounds, and rebalances from sandwich attacks and excessive price impact.