A Simple Add-On Tool to Shield Vault Manager’s Time, Performance and Gas Costs
Intro
Enzyme’s vision is to create easily accessible tools for Vault Managers to build, scale and monetize their investment (or collective execution) strategies. Depositors should be able to access these Vaults and opt-in to them in a truly non-custodial way.
Recently, high transaction costs on Ethereum have made it more expensive to rebalance portfolios every time a new investor mints a new Vault token. Enzyme is committed to bringing these costs down sustainably over time but in the meantime we’ve launched a gas subsidy program exclusively available for Enzyme Vault Managers to access (more info on that here). However, we’re not stopping there. To help mitigate these costs further, we’ve designed a Deposit Request contract whichs gives Vault Managers control over executing deposit requests.
The idea is simple. Normally a depositor into a Vault approves and mints their own shares in the Vault immediately. With the Deposit Request contract, this changes. Depositors can request to deposit into a Vault and then proceed to join a queue before being allowed into a Vault at the Vault Manager’s discretion. The Vault Manager can execute the queue of requests at a time of their preference.
Why would you want to do this?
This Deposit Requestor contract might not be for everyone but there are at least a couple of reasons we can think of where it might come in handy;
Saving time and money.
The time and money it takes to rebalance for small deposits can add up fast. With the Deposit Requestor, you can now queue up deposits and execute them all in one go and share the rebalancing costs across multiple deposit requests thus saving you time and money.
Convenience. Rebalancing at a time that suits you.
Whilst deposits can occur 24/7, few teams or individuals can be online to rebalance portfolios every hour of the day (unless using a bot for rebalancing — more on that here). Allowing deposits to accumulate can be nice because you can set a time to execute them and rebalance the portfolio whenever it suits you.
Performance.
Depending on how big your Vault is, a large deposit in a stable coin, combined with a very large move in our favour before you get a chance to rebalance can become a drag on performance. Being able to control the inflows also enables you to close the gaps between an imbalance and therefore insure your best returns.
How does it work?
From your Vault Manager launchpad, go to your Settings and scroll down to Deposit Request Functionality. Press Enable and sign the transaction. Once enabled, you’ll see a view as per below.
Once you’ve authorised this, you will notice that a new tab has emerged in your Vault Manager launchpad called Deposit Requests.
From now on you’ll see deposit requests under this tab and you can choose to execute them whenever you want to. We’d recommend putting a notice on your Vault page that you’re operating a Deposit Request contract so that depositors don’t get concerned.
Depositors left in limbo.
If a manager takes too long to execute a request or a depositor changes their mind before the request gets executed there is a way to cancel the deposit request. Just go to the depositor launchpad and “My Deposits” tab. Go to deposit requests to see all pending requests. You can easily cancel request from here.
Future directions
We’re really excited about the possibilities the Deposit Requestor opens up and one of the functionalities we want to build in next is a notifications system that both Vault Managers and Depositors have better UX and real time information about what is happening. We have decided not to release the Deposit Requestor feature publicly until the alerts are built in.
Conclusion
The Deposit Requestor feature is designed to save Vault Managers time, money and protect and drain on their performance. We’re excited to hear your feedback!
If you’re eager to start using this feature sooner, feel free to contact us via telegram or discord to discuss how we might be able to make that possible sooner.
