Teahouse Permissionless Vault
TeaVault V3 Pair
The Teahouse Dual-Asset Liquidity Provision Permissionless Vaults are designed to allow our off-chain LP strategies to manage liquidity positions on decentralized AMMs (DEXes) using concentrated liquidity. Beginning with Uniswap v3 and SushiSwap, Teahouse plans to expand to many more concentrated liquidity AMMs on the Ethereum networks and Layer 2’s.
- 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 Permissionless Vaults to open/close/modify the liquidity positions based on market conditions
- Vault Owners - Own or sponsor the Permissionless 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
The Permissionless 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.
Permissionless 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 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
The platform or third-party vault owner hosting the Teahouse Permissionless Vault can set and adjust the fee % to a level appropriate to the associated strategy. Strategy managers can also modify the performance fee % to match their strategy type and performance.
The Permissionless Vaults may collect four types of fees, each of which can be set ranging from zero (free) to a preset upper-limit to ensure fairness and transparency.
Fee Categories | Way of Collection |
|---|---|
Entry Fee | A percentage of the deposit (in both asset types) is collected upon a Deposit action |
Exit Fee | A percentage of the ShareTokens withdrawn is collected upon a Withdrawal action, before the ShareTokens are burned |
Management Fee | Collected by minting new shares when investors make a deposit |
Performance Fee | A percentage of the swap fees earned in the pool (accumulated every second), collected when the strategy rebalances |
Last modified 2mo ago