How It Works
1. Deposit
Deposit USDC into an LP vault. You receive internal vault shares representing your pro-rata ownership of the vault’s position.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
3. Auto-Rebalancing
When the pool price moves outside the position’s tick range, the keeper:- Unstakes from the gauge
- Removes all liquidity
- Swaps tokens back to USDC
- Recalculates the optimal range around the current price
- Mints a new position and re-stakes
4. Auto-Compounding
When accumulated AERO rewards exceed the compound threshold:- Claims AERO gauge rewards
- Takes 10% performance fee (sent to treasury as USDC)
- Swaps remaining AERO to USDC
- Collects any trading fees from the position
- Adds all idle USDC back into the position as additional liquidity
5. Withdrawal
Withdraw USDC at any time. The vault:- Calculates your share of
totalAssets - Removes proportional liquidity from the position if needed
- Swaps non-USDC tokens back to USDC
- Transfers USDC to your wallet
Fees
| Fee Type | Amount |
|---|---|
| Deposit | 0% |
| Withdrawal | 0% |
| Trading fee compounding | 0% |
| AERO reward compounding | 10% (performance fee) |
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:| Tick Spacing | Slippage Tolerance |
|---|---|
| CL1 | 0.5% |
| CL10 | 0.5% |
| CL50 | 1% |
| CL100 | 1.5% |
| CL200 | 2% |