How ICHI Works

How ICHI Works & Key Features

ICHI simplifies liquidity management by providing a non-custodial, automated solution that optimizes capital deployment across decentralized finance . The protocol focuses on single-sided concentrated liquidity pools, offering users a seamless way to maximize yield and minimize risk without manual intervention. Here's how ICHI works and what makes it stand out:

Single-Token Deposits: A Staking-Like Experience

ICHI enables users to deposit a single token into an ICHI Vault through its app or partner platforms. Unlike traditional liquidity pools that require paired token deposits, ICHI streamlines the process by allowing users to provide liquidity with just one asset. This approach eliminates swap costs and price range complexities, making liquidity provision as simple as staking.

In return, users receive Liquidity Provider (LP) tokens that represent their share of the pool.

Automated Liquidity Management: On-Chain Rebalancing

ICHI’s sophisticated algorithm automatically deploys deposited tokens into single-sided concentrated liquidity pools across various Automated Market Makers (AMMs). The protocol dynamically adjusts liquidity positions in real time, ensuring optimal ranges for trading fees while minimizing exposure to impermanent loss and market volatility.

This 100% on-chain automation requires no privileged rebalance function, ensuring fair and transparent liquidity management without the need for manual intervention.

No Trading Costs: Efficient Capital Allocation

ICHI eliminates the need for swaps during deposits or rebalances. The protocol allocates liquidity directionally, meaning it knows exactly what users deposited and adjusts ranges accordingly to avoid unnecessary selling of assets. This efficient capital allocation maximizes the trading fees users earn while reducing inventory risk.

Yield Generation: Sustainable Rewards for Liquidity Providers

ICHI helps users generate yield through trading fees collected in the liquidity pool. As trades occur, fees are distributed to LP token holders. The protocol also supports sustainable reward programs, ensuring long-term incentives without depleting token reserves.

By focusing on sustainable liquidity, ICHI helps token projects, DAOs, and asset managers maintain price stability while lowering the cost of extractable liquidity.

Flexible Withdrawals: Full Control of Funds

ICHI offers users the ability to withdraw their deposits and accrued earnings at any time. Users can swap their LP tokens for the corresponding assets in the vault, providing financial flexibility and easy access to funds.

ICHI is a proud partner of Chainlink and is a member of the Chainlink Build Program. https://blog.chain.link/chainlink-build-program/