About LP Vaults
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Teahouse LP Vaults (also called Permissionless Vaults) are dual-asset token pairs used to provide liquidity. Users deposit two types of tokens into selected strategies to be managed by Teahouse or a Teahouse strategy partner. Importantly, users have the flexibility to enter and exit at any point in time. Strategies run offline for privacy and efficiency reasons, but all funds are stored and managed transparently on-chain.
LP Vaults run dedicated DeFi strategies that dynamically respond to market signals and are managed by professional Strategy Managers at Teahouse. LP Vaults use dual-asset token pairs and allow users to deposit and withdraw at any time.
A user may DEPOSIT a pair of AssetTokens (e.g. ETH & USDC) into a LP Vault to provide liquidity. Users will receive an equal value (based on the current price) of ShareTokens as proof of ownership at the time of DEPOSIT, and can WITHDRAW (redeem ShareTokens back into AssetTokens) at any time.
Users can add liquidity using only one asset type from the trading pair, and AutoConvert will automatically swap a portion of the selected tokens into the other asset type of the trading pair.
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To simplify the deposit and withdrawal processes for multiple asset types, Teahouse built in an “AutoConvert” feature, powered by and , to automatically swap users’ assets into the expected input/output ratios using the best swap price available.