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 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.

When to use a Vault?

Some of the Vault's benefits are listed at Why use a Vault?

Technically Vault can cover whatever Strategy can, with improved management capabilities. However, Vault does have a different pricing model and a different list of supported chains, some might still be comfortable with Strategy.

Following is a deeper comparison between Vault & Strategy

Feature / Aspects	Strategy	Vault
Holding Asset	LP Token	Vault Token
Accessibility	Self-managed with Zap and Automation tools	Participants: Deposit, withdraw, earn. Vault Onwer: manages the fund with Zap and Automation tools.
Sharing	Copy strategies	Publish and monetize
Reward	LP fees 3rd-party farming rewards	LP fees Integrated farming rewards (.e.g Merkl) Revenue sharing for Vault Owner
Risk Mitigation	Self-managed	Vault risk levels & rules enforced
Chain/Protocol Support	Wider chains and protocols support	To be expanded gradually
Fee model	Fixed Zap and Automation Fees	Performance fees from generated rewards
Best-fit for	Simple strategy with a few liquidity positions Low management effort (little rebalance/reallocate)	Multiple complex LP strategies High management effort, regularly reallocates funds between different LPs.

Migrate from Strategy to Vault

To migrate, click the Migrate to Vault button on the strategy detail page, and follow the steps.