The easiest and most cost-effective way for projects and DeFi users to earn high yields on their favorite crypto.
- Projects can now create single-sided liquidity pools with their native token and earn revenue
- Hodlers can keep their favorite tokens while earning better rewards from concentrated Uniswap v3 positions
- Pool positions are automatically managed by ICHI to maximize yield without requiring any liquidity rebalancing by users
ICHI's Vaults utilize single-sided concentrated liquidity pools created with a project’s native token so their community can keep their tokens, build liquidity, and earn trading fees.
ICHI's Vaults are a Uniswap v3 liquidity management protocol that allow projects to create single-sided liquidity pools with their native tokens. Projects and DeFi users can deposit a crypto asset and earn more of their deposited asset as the pool generates trading fees and the price of $ICHI increases.
DeFi users benefit by being able to provide liquidity of their favorite tokens while earning high yields thanks to Uniswap v3’s concentrated liquidity. Pool positions are automatically managed by ICHI so users do not have to worry about extra gas fees or spending time actively managing their positions on Uniswap.
To participate, users simply deposit their desired token and begin earning trading fees in exchange. Users will earn trading fees in both the deposited token and $ICHI, depending on how the pool rebalances in relation to the price of both tokens. When withdrawing, users will receive a combination of the project’s token and $ICHI.
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IRR stands for Internal Rate of Return which is defined on Investopedia as the profitability of potential investments. In the ICHI Vault system, the IRR provides a representation of the performance of the vault from inception (meaning an account of its past performance). Due to the fact that it takes into account the past performance of the vault, it is not a perfect representation of future earnings but stands to illustrate what is likely/has been the case until the current date. Additionally, with ICHI's vote for IRR enhancements, the ICHI Foundation will guarantee IRR minimums over the first 6 months of a vault's lifespan.
This is dependent on many different factors. The IRR is a mixture of earned fees from Uniswap v3 (based on volume of trades in that pool), rebalances, price of the protected asset, and amount of liquidity deposited to the vault. The ICHI UI displays IRR for projects that hit the minimal threshold for Minimum Vault Strength as seen on the Vault Metrics page.
The vault takes single-sided deposits which we call the deposit token. The vault is named after the deposit token.
The Uniswap v3 pool that is created for the angel vault to deposit to is made up of the deposit token and the paired token. Initial liquidity should be deposited at the creation of the pool and spread across the entire range.
Rebalances happen on an as-needed basis. They are monitored by automated software but manually pinged. This will be a fully automated process in the coming months and more information about rebalance strategies will be described in these docs soon.
At the moment ICHI governance has been rebalancing vaults for partner projects due to the complexity. In the future, this will be automated and up to the Partner project to ping the contract when wanting a rebalance to occur.
What are the risks of using a Vault?
Vaults are highly risky as they allow for single sided liquidity deposits, and use those to deposit to a liquidity pool. This means deposits are subject to all risks of providing liquidity on an Automated Market Maker (AMM) including but not limited to Impermanent Loss, loss of all funds due to a hack of the contract, negative IRRs, etc. Please do your own research before depositing.