What is the difference between Teahouse's Portfolio Vaults, LP Vaults, & Easy-Earn Vaults?

Teahouse's offerings can be categorized into two: Pools (LP & Portfolio Vaults) & Easy-Earn

These two cater to two different types of users. LP & Portfolio Vaults cater to more defi-savvy users who are willing to move their assets around to increase yield. Easy-Earn, on the other hand, is for users new to defi and looking for a place to park their assets for steady returns.

Here is how each type of vault works:

Teahouse LP Vaults are dual-asset token pairs used to provide liquidity. Users deposit two types of tokens into select strategies to be managed by Teahouse or a Teahouse strategy partner and can enter and exit at any point in time (i.e., Permissionless).

Teahouse Portfolio Vaults are multiple-asset token vaults that incorporate various protocols for liquidity provision. Users deposit multiple types of tokens into select strategies to be managed by Teahouse or a Teahouse strategy partner. Just like LP Vaults, users can enter and exit Portfolio Vaults at any point in time (i.e., Permissionless).

Teahouse Easy-Earn Vaults are similar to traditional funds. Users deposit their single-type assets into select strategies to be managed by Teahouse or a Teahouse strategy partner. Users can enter the vaults at any time and exit the vaults during a specific interval every Round. Both depositing/withdrawals will need to be processed by our Strategy Managers. (read more about Easy-Earn Vaults here).

Simply put, from the users' point of view, LP/Portfolio Vaults are more convenient, as one can enter & exit at any time, but will need more understanding of defi. As for Easy-Earn Vaults, users will need to wait a certain period of time for their deposit/withdrawal request to be processed by the Fund Manager.

How do I pick a strategy?

Teahouse recommends users select strategies based on their understanding of the current market and their own risk tolerance. Some types of strategy tend to perform better than others in certain market conditions.

Users should generally look at each underlying strategy concept, mechanism, and historical data rather than the vault type, then pick the one(s) most suitable to individual needs.

It may also be beneficial to diversify into more than one strategy.

Take our quiz to see which strategy best fits you!

What are ShareTokens?

$OPTEA, $OPTEA+, $TeaETH, and $BETA+ Tokens are a few examples of β€œShareTokens” issued by Teahouse, each corresponding to a Teahouse strategy, that act as an accounting mechanism to denote the number of shares of the total fund a user owns. ShareTokens are issued to the fund investors based on the amount of assets (e.g. $USDC or $ETH) they deposit to the fund. The nominal value of a ShareToken changes with the fund. When exiting the fund, users will redeem their $ShareToken back into their original asset(s).​

Last updated