Understanding Vaults

Each vault’s dedicated page has 4 sections, referenced in the below graphic:

1. Overview

2. Vault Holdings

3. Staking Incentives

4. Add/Remove Liquidity

1. Overview

This section provides an overview of the asset pair, Total Value Locked (TVL), the vault’s annual APY, and total fees earned.

It also shows the fee of the liquid pool that Range’s strategy is being deployed on. For example, the screenshot shows “0.3%” beside ETH/MKR, referencing that liquidity is being provided to a liquidity pool with a 0.3% fee. In contrast, some vaults may have a different fee, such as 0.1%, meaning that there is a tighter liquidity spread.

Finally, if a vault is receiving boosted returns, a boost symbol will appear beside “Vault APY”.

1. Vault Holdings

This shows the vault composition, as well as both the performance fee and management fee taken by the vault’s strategy. The performance fee is paid based on returns above a certain threshold, while the management fee is charged regardless.

The vault composition may change naturally due to asset price fluctuations, but a specific ratio is typically targeted for a given vault. Actively managed vaults will be rebalanced more often than passive vaults.

1. Staking Incentives

Rewards are shown here, including both daily rewards and total rewards. Users may also use this section to stake, unstake, or claim their rewards.

1. Add/Remove Liquidity

This is where users may add liquidity or remove liquidity for the given assets. This will be covered in more depth in our #How to Add/Remove Liquidity section.