Vaults
Information on the Gamma's vault technology
A Vault is a position manager contract. A vault has certain management functions:
- deposit
- withdraw
- rebalance
- compound (ZeroBurn)
These functions allow it to manage funds in a liquidity pool. Vaults are non-custodial in that only the depositor can withdraw funds.
A list of active Vaults can be found here:
Gamma's vault contract refers to Hypervisor.sol, whose name is now retired
https://etherscan.io/address/0xa8076ae31e4b6c64d07b1ed27889924a962a70d3#events
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Hypervisor | Address 0x52ee1ffba696c5e9b0bc177a9f8a3098420ea691 | Arbiscan
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Hypervisor | Address 0x3cc20a6795c4b57d9817399f68e83e71c8626580 | PolygonScan
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The vault contract allows liquidity providers to deposit tokens using the deposit function. The function allows for double-sided deposits to be made from any wallet. When a vault receives a deposit, it mints a fungible LP ERC-20 token representing fractional ownership in the pool. These shares are minted in proportion to the units of token1 and token0 that are provided into the pool. These tokens are transferred to the LP token account specified by the depositor.
The vault contract allows liquidity providers to withdraw tokens using the withdraw function. Any holder of LP tokens may initiate withdrawals by calling the withdraw function. A withdrawer specifies how many LP tokens they would like to burn in exchange for the share of the vault's underlying LP position's asset.
An advisor account designated by the vault deployer has the right to call the rebalance function, which modifies the vault's LP position. In the current strategy, a vault's position consists of two liquidity positions: a base position which must match the pool's current ratio of token0 and token1 in composition, and a limit position, which contains a single asset (often what cannot be deposited in the base position due to the mechanics of concentrated liquidity).
A vault's strategy consists of determining where these positions should be placed and when they should be changed in response to market conditions. During a rebalance, the advisor account provides width and placement parameters for these respective positions. It also supplies a fee recipient account.
The ZeroBurn function takes uncollected fees and makes them collectible. It is called every deposit, withdraw, and rebalance function. This allows Gamma's vaults to compound their fees more frequently than rebalances would normally allow.
Last modified 1mo ago