Why vaults exist
Concentrated liquidity earns more per unit of capital — but only while the position is in range, and keeping it there is active work. Vaults close that gap: deposit assets, and the vault manages the concentrated position for you — choosing ranges, re-positioning as the market moves, compounding. Vaults live outside the pool, as their own contracts: pools stay minimal and trustless, while active management strategy — which requires discretion — is layered on top where it can be chosen, audited, and priced separately.How they work
1
Deposit
Deposit the pair’s assets into the vault and receive vault shares representing your part of the managed position.
2
The vault manages
The vault holds the underlying concentrated position and adjusts its range as the market moves, keeping the capital productive.
3
Withdraw
Redeem shares for your part of the underlying assets plus accrued fees, minus the vault’s management fee.
Trade-offs
- Passive exposure to CL yields — no range monitoring, no manual re-ranging
- A management fee — a share of earnings goes to the vault’s fee recipient
- Strategy risk on top of LP risk — impermanent loss still applies, and the vault’s re-ranging decisions add their own performance variable
For hands-on LPs who want full control of their ranges, direct positions remain first-class — see Pools & Fees.