Charm’s Alpha Vault automatically manages liquidity on Uniswap V3 on your behalf. It’s simple and easy to use, and earn higher yields using concentrated liquidity.
The highlights
- There is no need to actively manage your position — you can just leave your deposit in the vault.
- High yields are possible because liquidity is concentrated, and the vault does not incur any swap fees.
- Range orders are adjusted as the price moves, so the vault can continue to capture fees.
- LPs are protected against impermanent losses because the vault rebalances by automatically selling assets causing the imbalance.
Further details are found in a previous article.
How to use Charm’s Alpha Vault
There will be a TVL cap of around 75 ETH and $250k USDC, as the vault uses a new strategy and the project have not yet been audited.
An audit and bug bounty is being scheduled, and the performance of the vault will be closely monitored.
If you’re interested in try it out, here are the detailed steps:
- Go to alpha.charm.fi, and connect your wallet:
2. Everything you need will be displayed in one page:
3. If you do not have WETH, you should convert the ETH you wish to deposit into WETH by clicking ‘Wrap ETH’:
4. Follow the onscreen prompts in your wallet (eg Metamask). When ETH have been converted to WETH, it will appear in the ‘Deposit’ tab:
5. Approve both USDC and WETH so you can deposit into the vault. You only need to do this once per wallet. Follow any onscreen prompts from your wallet (eg Metamask) until the transactions are confirmed.
6. When approved, you are now ready to deposit. Choose the amount* of USDC or WETH you wish to deposit:
*The final amount of USDC and WETH is chosen by the vault, so that they are in the correct proportions for the vault to work.
7. Click Deposit and follow the on-screen prompts from your wallet (eg Metamask). Once the transactions are confirmed, you should see them under ‘Your positions’ *:
*Do not worry if the amount is less than that in step 6. The final amount taken from your wallet is slightly less, due to the approximations used by the vault to calculate the amounts to send to Uniswap V3.
8. You can withdraw from the vault by clicking the Withdraw tab, and press withdraw:
9. The amount of USDC and WETH should arrived back into your wallet, once the transactions are confirmed.
There you have it, you can now LP into Uniswap V3 in a very easy, intuitive, and hassle free manner! No need to chose price ranges, actively manage your positions, or worry about volatility, because the vault will do all this for you so you can make the most of what Uniswap V3 has to offer.
Next Steps
Charm has created a new investment strategy using range orders, and the first version of this strategy was implemented in Charm’s Alpha Vault.
Range order opens up new possibilities within DeFi, and Charm is looking forward to work with the DeFi community to introduce more innovations in this area.
If you’d like to contribute to the discussions, or have any other questions, suggestions, or feedback; you can contact Charm at our social media channels below— we would love to hear your thoughts, and then work with you to make it happen : )
See you soon !
Join the community!
To be the first to hear updates, follow @charmfinance on Twitter
Feel free to ask questions, suggest ideas or chat about anything on Discord
