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 furtherβ€”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 upgradeβ€”they’re a shift in how liquidity farming is experienced on Krystal: simpler, smarter, and scalable.

Following is a high-level comparison

Feature
Strategy
Vault

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

Last updated

Was this helpful?