Automated Liquidity Management Vaults on top of concentrated liquidity AMMsOur AMM vaults provide infrastructure for market makers, trading partners to run a wide array of strategies on top of concentrated liquidity AMMs.The currently supported AMMs are -

  1. 1.Uniswap v3

  2. 2.Pancakeswap v3

  3. 3.Quickswap v3

The following is an overview of the core contracts-

  • ​AutoRouterFactory.sol contract that allows creating of AutoRouter vaults. It creates ERC1967 proxies in front of provided implementation contracts.

  • ​AutoRouterVault.sol contract that allows AMM liquidity provision through mint and addLiquidity functions. It's an upgradeable contract and implements Openzeppelin's UUPSUpgradeable proxy pattern.

  • AutoRouterVaultStorage.sol contract for storing storage variables for AutoRouterVault contract.

  • ​Ownable.sol contract for managing the manager role.

​AutoRouter operates as follows:

  • A factory contract is deployed by a Factory Manager.

  • The factory manager creates a vault for Uniswap V3 pair providing token0, token1 and fee for the pair along with the implementation and initialize data specific to implementation.

  • The minting on the vault contract is not started until the vault manager calls updateTicks on the vault and provides the tick AutoRouterfor liquidity provision.

  • Updating the ticks starts the minting process and changes pool status to inThePosition.

  • Anyone wanting to mint calls getMintAmounts with token0 and token1 they want to provide liquidity with and the function returns the mintAmount to be provided to mint function for liquidity into the vault's current ticks. This mints fungible vault shares to mint representing their share of the vault.

  • Anyone wanting to exit from vault can call burn function with the amount of owned vault shares they want to burn. This burns portion of active liquidity from Uniswap V3 pool equivalent to user's share of the pool and returns user the resulting token amounts along with the user's share from inactive liquidity (fees collected + provisioned liquidity) from the vault.

  • At the times of high volatility, vault manager can remove liquidity from current tick AutoRouter making all the vault liquidity inactive. The vault's status is changed to out of the position yet minting continues based on the token0 and token1 ratio in the pool and users are minted vault shares based on this ratio. If the total supply goes to zero while the pool is out of the position then minting is stopped since at that point there will be no reference ratio to mint vault shares based upon. The vault must update the ticks to start accepting liquidity into a newer tick AutoRouter.

  • Vault manager can perform swap between token0 and token1 to convert assets to a specific ratio using swap function for providing liquidity to newer tick AutoRouter through addLiquidity function.

  • Part of collected fee from Uniswap V3 pool is provided to vault manager as performance fee and part of notional amount is deducted from redeeming user as managing fee.

  • Vault manager can update the managing and performance fee managing fee is capped at 1% and performance fee is capped at 1%.

  • Vault manager can pause and unpause the mint and burn function of the vault contract.

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