Liquidity vault
The liquidity vault is a market maker owned by the protocol. Anyone can deposit USDC and share in its results. The vault trades by the common rules: the same orders, fees and liquidations as everyone else.
Deposits and withdrawals
- Deposit.
MsgDepositadds USDC and mints shares at the current share price. The first deposit is at least 1 USDC. The vault's total cap is 10,000 USDC. - Withdrawal.
MsgWithdrawburns shares and returns USDC at the current share price. There is no delay and no fee. - Withdrawal limit. Funds held as margin for the vault's open positions stay until the positions shrink.
- Share price. The vault's equity (collateral plus unrealized PnL at the oracle price) divided by the number of shares. While oracle prices are stale, deposits and withdrawals do not go through.
How the vault quotes
| Parameter | Value |
|---|---|
| Markets | BTC, ETH, LTC, SOL and XRP |
| Refresh | Every 5 blocks, with short-term orders that live 10 blocks |
| Levels | 2 per side: 0.2% from the oracle price, then +0.1% per level |
| Order size | 5% of the vault's equity |
| Skew | Quotes shift against the accumulated position to reduce it |
| Leverage per market | Up to 3x. Beyond that the vault quotes only on the side that reduces the position |
| Margin in use | No more than 50% of equity |
| Minimum equity | 500 USDC. Below it the vault adds no inventory and quotes only on the side that reduces its positions |
| Stale price | If a vault position has no fresh price, the vault waits for it and does not quote. A position on a pair the oracle has closed is valued at the last price, and the other markets keep being quoted |
Depositor protection
- Drawdown. If the share price falls 20% from its peak, the vault switches to close-only and quotes only on the side that reduces positions. Only governance can restore normal mode. Deposits are not accepted in close-only.
- Insolvency. While the vault's equity is 0 or less, deposits and withdrawals are not accepted.
- Wind-down. If the vault went bankrupt and holds no positions, governance burns all shares. After that the vault can accept deposits again.
Only governance changes the vault's parameters.
Leader vaults
The protocol supports vaults run by a leader (copy trading): the leader trades depositors' capital and earns a share of the profit. They are currently off through the leader_vaults_enabled parameter.