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
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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