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Armada Launches New bSOL/VEUR Managed Vault for Maximum Capital Efficiency
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Armada is an innovative DeFi platform on Solana that provides smart solutions for efficient operations in DeFi. We are excited to announce the launch of the new Armada managed vault featuring the bSOL/VEUR pool on Orca.
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This managed vault offers key advantages over self-managing a liquidity pool:
Professional management: The vault is operated by STS, a professional market maker, using advanced strategies for optimal returns. You don’t need to actively manage positions yourself.
Dynamic rebalancing: The vault automatically rebalances your position at least once a day based on market conditions to minimize impermanent loss.
Flexible capital efficiency: You can deposit and withdraw at any time without locking up assets. The vault strategies maximize returns while allowing flexibility.
Concentrated liquidity: The vault concentrates liquidity within predefined ranges, enabling instant trading within the ecosystem.
The bSOL/VEUR vault brings these benefits to liquidity providers looking to earn yields on VEUR stablecoins. The launch represents an exciting advancement for DeFi on Solana.
How the Armada Managed Vault Works
The Armada managed vault leverages concentrated liquidity pools for efficient operations in DeFi. Concentrated liquidity refers to providing liquidity within a predefined price range rather than evenly across the entire curve. This allows liquidity to be concentrated at relevant prices where it is most useful.
The vault is operated by STS, a professional market making firm. Their market making experts actively manage the vault by analyzing market conditions and adjusting parameters accordingly. This active management ensures liquidity is always concentrated optimally.
Together, the concentrated liquidity pools and professional market making create a dynamic solution. Liquidity providers can deposit assets into the vault to earn fees, while relying on the professionals at STS to actively maximize returns through concentrated liquidity strategies.
This combination offers unparalleled flexibility and capital efficiency. Liquidity providers can deposit and withdraw at any time without locking up assets. The concentrated liquidity also allows their capital to be allocated in the most efficient way for earning fees. This hands-off approach lets liquidity providers take advantage of professional strategies more easily.
The bSOL/VEUR Strategy
The bSOL/VEUR strategy leverages 7 day volatility to determine the optimal position range for the liquidity pool. This data-driven approach allows the vault to dynamically adjust based on changing market conditions over the past week.
The vault rebalances at minimum once per day, targeting a 50% bSOL and 50% VEUR ratio. More frequent rebalancing occurs as needed to maintain this balanced exposure. This automated rebalancing ensures the vault can capture fees and minimize impermanent loss in sideways markets when there is volatility but little net directional movement.
By analyzing volatility and regularly rebalancing, the bSOL/VEUR vault can provide liquidity providers exposure to both assets while aiming to maximize returns. The 50/50 ratio is designed to benefit from fees generated on trading activity while reducing impermanent loss.
