Vault vs Strategy
WTH is Liquidity Position, Liquidity Strategy, and now Liquidity Vault?
You might be confused by all the different terms on Krystal:
A Liquidity Position is a single position on a DEX (e.g., Uniswap V3), typically represented by an NFT issued by the protocol.
A Liquidity Strategy is a managed approach to a specific trading pair, composed of one or a series of positions that are periodically rebalanced. Strategies could include automation tools like auto-rebalance, auto-exit, and fee compounding.
A Liquidity Vault takes this a step further—it can hold multiple Liquidity Strategies across different pools and tokens. This allows users to build and share more customized, advanced strategies under a single, smart-contract-governed framework.
Vault = Strategy + Automation + Community Sharing
Vaults are not just a technical upgrade—they’re a shift in how liquidity farming is experienced on Krystal: simpler, smarter, and scalable.
Following is a high-level comparison
Asset Location
In user wallet
In Vault
Automation
Manual setup
Built-in automation
User Access
View-only or mimic
Deposit, withdraw, earn
Sharing
Copy strategies
Publish and monetize
Risk Mitigation
User-managed
Vault risk levels enforced
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