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What are they?
What are Tempest's Symmetric Vaults?
Tempest's Symmetric Vaults are designed to optimize user returns while still prioritizing reducing impermanent loss. It does so by utilizing limit orders to correct portfolio imbalances caused by price movement rather than the swaps used in active rebalancing strategies. Symmetric Vaults maintain 2 positions:
Base position As same as normal Concentrated Liquidity Position with both token
Limit Order position Position for rebalancing by adding one side token when providing liquidity
Each Symmetric Vault has 3 parameters:
Base Order Width The width of the 50/50 Concentrated Liquidity Position that forms the bulk of the liquidity providing
Limit Order Width The limit order width is utilized to define how the vault will use a limit order to passively get rid of the excess asset
Rebalance Frequency The frequency at which the ALM vault rebalances which involves the placing of 2 new positions, the 50/50 base order and the limit order of the excess asset
These 3 parameters are optimized by the off-chain ML model to make sure liquidity is always placed optimally and able to adapt to changing market conditions.
Main Strategies
How do they work?