Lps (Partner Vault)
⚠️ Disclaimer: This vault is not managed by Ledgity. Ledgity bears no responsibility for its strategy, risks, or performance. Please conduct your own due diligence.
1) INTRODUCTION
The LP Strategy is a dynamic liquidity provision vault designed to generate passive yield on
your deposit. It provides concentrated liquidity using USDC (ERC-20) paired with crypto assets from the top 50 market capitalisations.
This vault is one of the high-performance products available on the platform to actively put their assets to work instead of keeping them idle. Thanks to the smart-contract used for the vault, the strategy deployment is ensured without ever needing custody of the participants capital. You are always in control of your funds using your wallet.
Target audience:
Investors aiming to outperform a simple “hold” strategy
Investors seeking passive income through liquidity providing service on chain.
The strategy seeks to generate higher long-term returns than holding crypto assets passively, by actively providing concentrated liquidity on highly traded pairs.
Recommended horizon: 18+ months (long-term strategy)
Liquidity of the capital: 100%, withdrawals are immediate, partial or full, with no delay
Risk level: High (due to volatility of the underlying asset within the strategy)
2) PORTFOLIO ALLOCATION MODEL
Primary underlying: USDC (native ERC-20)
Network: Ethereum
Why USDC? Provides a stable base that reduces volatility and ensures predictable position sizing.
Liquidity pairs: Always composed of USDC paired with a top-50 crypto asset, selected dynamically.
Full USDC option: The vault can remain entirely in USDC during adverse market conditions.
3) STRATEGY DESCRIPTION
The LP Strategy deploys capital with automated execution to optimise yield through concentrated liquidity.
Asset exposure: Top-50 crypto assets paired with USDC.
Liquidity ranges: Ranges are moderately tight to balance staying in-range vs capturing higher fees.
Adjustments: Positions are adjusted opportunistically, not on a fixed schedule. LP strategy sets auto rebalance, stop loss, take profit and while automations ensure execution 24/7.
Exit to USDC: The vault rotates entirely into USDC during:
Market crises
Trend breakdowns
Extreme volatility
Diversification: The vault may be exposed to multiple liquidity pools simultaneously, depending on opportunities (no strict maximum).
Yield optimisation:
Active rebalance to remain in-range
Use of technical analysis to optimise entry levels
Dynamic selection of high-volume pools
Multi-pair exposure when beneficial
Automation: LP strategy sets ranges, assets, risk levels, and management rules. Automations execute stop-loss and rebalancing instructions instantly and without emotion.
4) TECHNICAL ARCHITECTURE
The vault is operated by Krystal. Krystal Vaults offer a modular and secure structure:
Vault Components:
Smart contract vault (non-custodial)
Strategy module (logic layer)
Automated execution layer (stop-loss & rebalancing)
Deposit/withdrawal module (USDC only)
DEX interactions
The vault uses all compatible Ethereum-based DEXs supporting concentrated liquidity.
Automations used (All parameters set by LP strategy experts.):
Rebalancing execution
Stop-loss execution
Deposits & Withdrawals
Always in USDC only
Withdrawals are immediate, partial or full, with no delay
Users always receive 100% USDC
5) FEES
Entry Fee: None
Management Fee: None
Exit Fee: 0.01% (distributed to remaining participants)
Performance Fee: 50%
Applied only to the yield generated by the strategy
Never applied to capital appreciation of assets
Participants simply receive their net portion after fees
A pure win-win model: we only earn when investors earn
6) RISK MANAGEMENT FRAMEWORK
Impermanent Loss
Due diligence, active management
Altcoin Volatility
Due diligence, active management
Smart Contract Risk
Independent audits + battle-tested integrations
The strategy may experience periods of variable returns depending on market conditions and trading volumes. Drawdowns can occur, especially in volatile market phases.
No capital guarantee: Investors may lose part or all of their investment.
7) PROJECTIONS & ILLUSTRATIONS SCENARIOS
To help investors better understand the potential volatility of capital and the mechanics of concentrated liquidity. These projections are not performance promises, nor should they be interpreted as expected or guaranteed returns. Their sole purpose is to provide a clearer view of how the vault may behave under different market conditions.
The examples use a simulated liquidity position with an initial deposit of $50,000 on an ETH/USDC pair, with a net APR of 40% for the client (after all fees), yields are paid in both assets in the pair at 50/50 (in this scenario 50% in ETH and 50% in USDC). This figure reflects the historical performance range observed in similar market environments for our strategy, but it remains highly dependent on factors such as trading volume, volatility, pool utilisation, and asset price movements.
ETH drops 25% valuation
after 12 months
The yields are withdrawn
and held
$37,500 worth of ETH
$39,917.04 worth of ETH
$0.00 worth of USDC
$17,500.00 worth of Yields
For a Total of $57,417.04
ETH drops 25% valuation
after 12 months
The yields are compounded
every 2 weeks
$37,500 worth of ETH
$39,917.04 worth of ETH
$0.00 worth of USDC
$21,318.85 worth of Yields
For a Total of $61,235.89
ETH is at the same price
after 12 months
The yields are withdrawn
and held
$50,000 worth of ETH
$25,000.00 worth of ETH
$25,000.00 worth of USDC
$20,000.00 worth of Yields
For a Total of $70,000.00
ETH is at the same price
after 12 months
The yields are compounded
every 2 weeks
$50,000 worth of ETH
$25,000.00 worth of ETH
$25,000.00 worth of USDC
$24,364.40 worth of Yields
For a Total of $74,364.40
ETH gains 25% valuation
after 12 months
The yields are withdrawn
and held
$62,500 worth of ETH
$0 worth of ETH
$52,155.04 worth of USDC
$22,500.00 worth of Yields
For a Total of $74,655.04
ETH gains 25% valuation
after 12 months
The yields are compounded
every 2 weeks
$62,500 worth of ETH
$0 worth of ETH
$52,155.04 worth of USDC
$27,409.95 worth of Yields
For a Total of $79,564.99
These scenarios illustrate:
How capital value can fluctuate due to price movements of the underlying crypto asset (ETH)
How concentrated liquidity positions can generate significant yield, while still being exposed to short-term drawdowns
How the strategy may behave with asset ratio varying within the pools thus reducing volatility (upward or downward)
The potential impact of the underlying assets volatility on the yields (upward or downward)
The impact of withdrawing or compounding yields
Again, these projections are hypothetical educational tools, not forecasts. They aim to help investors develop a more realistic understanding of the risk/return profile of concentrated liquidity strategies.
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