TeaVault v3

The Teahouse Dual-Asset Liquidity Provision (Permissionless) Vaults are designed to allow our off-chain LP strategies to manage liquidity positions on decentralized AMMs (DEXs) using concentrated liquidity. Beginning with Uniswap v3, Teahouse plans to expand to many more concentrated liquidity AMMs on the Ethereum networks and Layer 2’s.

Vault Structure

The LP Vaults employ a specialized smart contract, TeaVault v3, designed to facilitate concentrated liquidity provision by holding multiple liquidity and spot positions. It encompasses various functions including asset custody flow, execution of strategy signals, and fee accounting management.

LP Vault users are empowered to deposit and withdraw their assets in a self-custodial manner. By minting and burning ShareTokens, users can enter or exit strategies at their discretion, ensuring the flexibility and liquidity of their assets.

Liquidity strategy managers are not directly responsible for holding the users’ assets. Instead, they utilize the Vault to manage user funds by rebalancing portfolio holdings and selecting volume and price ranges for liquidity positions. The absence of direct control by managers in TeaVault v3 pairs enhances the safety and transparency in liquidity management and supports automated management of substantial volumes of liquidity

Roles

• Liquidity Providers - Deposit assets into the token pool then withdraw appropriate ShareTokens to represent the share of the pool

• Strategy Managers - Manage the offline algorithms that send signals to the LP Vaults to open/close/modify the liquidity positions based on market conditions

• Vault Owners - Own or sponsor the LP Vaults (usually Teahouse, sometimes can be a Teahouse partner such as a protocol that wants to list their token)

• Platform - provides the underlying structure and governance & collect fees