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.

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