Angel Vault FAQs

Learn more about ICHI's Angel Vaults

What is an Angel Vault?

An Angel Liquidity Vault is a Uniswap v3 liquidity management tool that helps protect a project’s token price during market dips.

• Angel Liquidity Vaults build treasuries of Protocol-Owned Liquidity

• Angel Liquidity Vaults allow crypto projects and DeFi users to earn better fees without having to manage their concentrated pool positions

• Angel Liquidity Vaults add purchase liquidity to the buy-side of an asset which allows for price protection and generates high income.

How do Angel Vaults work?

Angel Vaults use Uniswap v3 concentrated liquidity to establish a wall of liquidity directly under the price of a project’s token. As the Angel Vault rebalances, a new price floor is established which protects a project’s token against a market downturn. It is recommended that a project establishes at least a 15% Angel Vault Deposit to Market Cap ratio to successfully maintain price protection.

Why would a project want an Angel Vault?

They protect your token price and earn revenue!

When an asset has a majority of its liquidity paired with Ethereum, the token becomes exposed to both the upside and downside of $ETH market volatility. With an Angel Vault, projects are decorrelated from ETH during market downturns. Since the deployment of ICHI’s Angel Vault, the $ICHI price has been supported during a downturn, while still being able to enjoy market upside.

What is the ROI Indicator on the ICHI App and how is it calculated?

ROI is calculated by adding up two factors (1) Vault IRR and (2) Rewards. Vault IRR displays the Uniswap v3 fees generated based on the historical performance of the Vault. (IRR is not a perfect representation of future earnings but stands to illustrate what is likely/has been the case until the current date). Rewards are based on ICHI’s weekly reward emissions.

Where can I find the oneUNI<>ICHI pool on Uniswap v3?

https://info.uniswap.org/#/pools/0x6dedf50966dbef7c5dec3607debe118f28b6bf33

How many types of tokens are deposited into a Vault?

Only the Deposit Token! Angel Vaults take single-sided deposits (usually of a Branded Dollar) which we call the deposit token. The vault uses the deposit token to provide price protection for the other token in the pool known as the paired token.

How is initial liquidity supplied to the pool?

The Angel Vault uses a Uniswap v3 pool that is made up of the deposit token and the paired token. To start the pool, an initial amount of liquidity is deposited at the creation of the pool and spread across the entire range.

How often do rebalances happen? Are they automated?

Currently rebalances happen about once a week. They are monitored by automated software but manually pinged. This will be a fully automated process in the coming months.

Who rebalances the vault?

At the moment, ICHI governance has been rebalancing vaults for partner projects due to the complexity. In the future, this will be up to the partner project. Partners who choose to rebalance can earn 10% of trading fees to pay for gas and other expenses. Otherwise, they can choose to have ICHI manage the position.

Are Angel Vaults profitable without rewards?

This is dependent on many different factors (ex. Volume, number of rebalances, liquidity). The ICHI UI displays IRR (also known as the univ3 fees earned from trades routed through the vault’s liquidity in the pool) for projects that have over 5% of market cap liquidity in their vault.

What are the benefits of using a Branded Dollar in an Angel Vault vs. USDC?

• Branded Dollars offset liquidity rewards provided for Angel Vaults

• Converts TVL into POL through the usage of Treasury funds

• For every $1 of liquidity added to the vault, $1.20-1.50 of value is locked for the protocol (due to over-collateralization)

• Branded Dollar DMA technology provides a project with its own over-collateralized stable asset. This collateral can be managed and put to work across DeFi.