Lite Turbo Vault

Introduction

Automated liquidity management vault for DLMM pools.

Goals:

  1. Simplify DLMM liquidity provision

  2. Automate liquidity rebalancing across price ranges

  3. Optimize capital efficiency through multi-strategy deployment

  4. Aggregate fees and rewards for vault shareholders

Architecture

                    ┌──────────┐
                    │  Keeper  │
                    └─────┬────┘
                          │
                          ▼
        ┌─────────────────────────────────┐
        │     Lite Turbo Vault            │
        │  ┌────────┐ ┌────────┐ ┌─────┐ │
        │  │  DLMM  │ │ Buffer │ │ Inv │ │
        │  └────────┘ └────────┘ └─────┘ │
        └──────────────┬──────────────────┘
                       │ 1:1
                       ▼
                ┌─────────────┐
                │   LBPair    │
                └─────────────┘

Components:

  1. DLMM Liquidity - Active positions in price bins

  2. Buffer - Idle tokens (deposits, fees, rewards)

  3. Investment Handlers - Optional yield strategies

  4. Keeper - Owner managing vault operations

  5. LBPair - Underlying DLMM pool

Parameters

Parameter
Description

protocolFeeRate

Protocol fee on trading fees (basis points, max 5000)

feeRecipient

Protocol fee recipient address

depositXMax / depositYMax

Maximum single deposit per token

maxTotalSupply

Vault share supply cap

binThreshold

Maximum allowed bin crosses

twapInterval

TWAP validation period (seconds)

whitelistedAddress

Optional exclusive depositor

currentRange

Distribution config (deltaIds, distributionX, distributionY)

Use Cases

Deposit

  1. User transfers tokenX and/or tokenY to vault

  2. Vault calculates shares based on total assets

  3. Mint shares proportional to deposit value

  4. Tokens remain in buffer

Withdraw

  1. User burns vault shares

  2. Calculate proportional X/Y amounts

  3. Transfer tokens from available liquidity

  4. Distribute reward tokens proportionally

Rebalance

Trigger: Owner only

Steps:

  1. Remove all DLMM liquidity

  2. Collect pending fees and rewards

  3. Withdraw from investment handlers (optional)

  4. Redeploy with new distribution parameters

  5. Invest to handlers (optional)

Input: RebalanceParams (amounts, deltaIds, distributions, handler indexes)

Compound

Trigger: Anyone

Steps:

  1. Collect pending fees and rewards

  2. Redeploy buffer using current distribution

  3. No liquidity removal required

Force Add/Remove LP

Owner Functions:

  1. addLiquidity - Deploy buffer to DLMM with current distribution

  2. removeLiquidity - Remove all DLMM liquidity to buffer

  3. removeLiquidityPartially - Remove percentage of liquidity to buffer

Force Invest/Divest

Owner Functions:

  1. invest - Deploy buffer to handler by index

  2. divest - Withdraw from handler by index

  3. addInvestmentHandler - Register new handler

  4. removeInvestmentHandler - Remove handler (must be empty)

Admin Functions

  1. setFeeRecipient - Update fee recipient

  2. setProtocolFeeRate - Update protocol fee rate

  3. setWhitelist - Set whitelisted depositor

  4. setDepositMax - Set deposit limits

  5. setMaxTotalSupply - Set share cap

  6. setBinThreshold - Set bin cross threshold

  7. setTwapInterval - Set TWAP period

  8. setDistribution - Update default distribution

  9. setPaused - Pause/unpause deposits and withdrawals

Prevent TWAP Price Manipulation

Protection Mechanism:

  1. Check bin crosses during twapInterval period

  2. Compare against binThreshold limit

  3. Revert if crosses exceed threshold

  4. Applied on every deposit

Rebalancing Method

Distribution System

Delta-Based Parameters:

  1. deltaIds - Bin offsets from active bin

  1. distributionX - X token weights (sum = 1e18)

  2. distributionY - Y token weights (sum = 1e18)

Rebalancing Process

  1. Remove Positions

    • Burn LP tokens from all tracked bins

    • Receive tokens to buffer

  2. Settle Claims

    • Collect trading fees

    • Collect farming rewards

    • Transfer protocol fee to recipient

  3. Withdraw Investments (optional)

    • Withdraw all from handlers if enabled

  4. Calculate Range

    • Get current active bin ID

    • Apply deltaIds to determine target bins

    • Validate range bounds

  5. Deploy Distribution

    • Build liquidityConfigs from parameters

    • Transfer tokens to LBPair

    • Mint LP tokens

    • Track deployed bin IDs

  6. Deploy to Handlers (optional)

    • Invest specified amounts by handler index

Features

  1. TWAP price manipulation protection

  2. Asymmetric distribution support

  3. Single-transaction rebalancing

  4. Multi-strategy deployment

Keeper Rebalancing Strategy

Metrics to Monitor

  1. APY Comparison

    • DLMM pool trading fees APY

    • Lending protocol APY

    • LSD staking APY

    • Calculate optimal allocation

  2. Effective Liquidity

    • Current liquidity depth in active bins

    • Liquidity utilization rate

    • Buffer vs deployed ratio

  3. Trading Behavior

    • Volume distribution across bins

    • Active bin movement patterns

    • Fee generation per bin

    • Optimal LP shape for current market

Rebalancing Triggers

  1. Time-Based

    • Daily scheduled rebalance

    • Check all metrics at fixed intervals

  2. Demand-Driven

    • Spike in trading volume (LP utilization high)

    • Active bin moved significantly from range center

    • Large deposits in buffer waiting deployment

  3. Yield-Driven

    • Lending rewards increase significantly

    • LSD APY spikes above DLMM fees

    • New farming incentives available

Decision Process

  1. Evaluate current allocation performance

  2. Compare yields across strategies

  3. Assess liquidity needs vs yield opportunity

  4. Calculate optimal distribution and amounts

  5. Execute rebalance with new parameters

External Protocol Monitoring

Health Monitoring

  1. Lending Protocol Safety

    • Monitor utilization rates

    • Track bad debt accumulation

    • Check collateral health ratios

    • Verify oracle price feeds

  2. LSD Protocol Safety

    • Monitor validator performance

    • Track slashing events

    • Verify withdrawal queue depth

    • Check redemption rate stability

  3. Risk Indicators

    • TVL sudden drops

    • Unusual withdraw patterns

    • Smart contract upgrades

    • Security incidents reported

Emergency Response

  1. Monitoring Alerts

    • Set threshold alerts for each metric

    • Multi-channel notification system

    • Priority levels for different risks

  2. Emergency Withdrawal

    • Keeper triggers emergency divest

    • Withdraw all funds from affected handler

    • Move assets to vault buffer

    • Pause new investments to handler

  3. Post-Emergency Actions

    • Remove compromised handler

    • Redistribute assets to safe strategies

    • Notify vault users

    • Update risk parameters

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