Overview

Automated Liquidity Management Vaults on top of concentrated liquidity AMMs

Our AMM vaults provide infrastructure for market makers and trading partners to run a wide array of strategies on top of concentrated liquidity AMMs.

Beyond this, Empower AI Protocol operates as follows:

  • Factory Contract Deployment: A Factory Manager deploys a factory contract. A factory contract is a special type of smart contract designed to create other smart contracts.

  • Vault Creation: The Factory Manager sets up a vault for a Uniswap V3 pair, specifying the tokens and fees involved.

  • Minting Process: Minting begins after the vault strategist updates the tick range for liquidity provision, changing the pool status to 'inThePosition'.

  • Liquidity Provision: Users provide liquidity by minting fungible vault shares.

  • Exiting the Vault: Users can exit by burning their vault shares, receiving their share of the liquidity back, including any collected fees.

  • Handling Volatility: In volatile conditions, the vault strategist can move liquidity out of the current tick range, changing the vault status to 'out of the position', but minting continues based on the pool's token ratio.

  • Swapping and Adding Liquidity: The vault strategist can swap between token0 and token1 and add liquidity to new tick ranges.

  • Fees: A portion of the fees collected from the Uniswap V3 pool is given to the vault strategist. There's also a managing fee for redeeming users.

  • Fee Limits and Updates: The vault strategist has the authority to update these fees which have an upper cap

  • Pausing and Unpausing: The vault strategist can pause or unpause the minting and burning functions of the vault contract as an emergency procedure

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