TLDR:
⁃ Redacted Labs will be launching three Mangrove Vaults « Passive Kandle strategies », on the following market : BTC/USDC, ETH/USDC, ARB/USDC.
⁃ The strategies will aim to reduce Impermant Loss for the users through avoiding high-volatility phases, a dynamic asset allocation and a adaptive range management.
⁃ Going forward, Redacted Labs will launch different news vaults in the following weeks, such as stable vaults.
About Redacted Labs
Redacted labs is a DeFi desk offering tailor-made services to professionals wishing to take advantage of decentralized finance with institutional risk management. Our team of collaborators brings a wealth of experience in financial advisory, analytics and legal research.
Our aim at Redacted Labs is to offer our customers the experience of decentralized finance while controlling risk, by providing a fund management service tailored to their needs.
@Magikarp (founding CEO)
⁃ DeFiant since 2020.
⁃ Co-founder of Nebulae Ventures.
⁃ Risk management geek.
⁃ Previously managed up to 10M AUM in DeFi.
@cazubelli (DeFi l Lead)
- Timeswap ambassador, DEFi lending / borrowing market
- Swaap Finance ambassador, DEFi DEX
- DEFi analyst at Redacted Labs
- 5 years of exprience in DEFi, risks analyzing, protocols core functioning, DEFi composability and strategies
- Alyra certification (Rinkeby 2022)
Jordan Pouille - Chief Legal Officer / Chief Legal Chef
- Contributor to the HCJP (https://www.hcjp.fr/) - Publication du rapport du HCJP sur la réception en droit francais des organisations autonomes decentralisees, ou "DAO" - LE MONDE DU DROIT : le magazine des professions juridiques
- 1y of experience in french law firms
- 4y of experience as Legal Manager for Decentralized projects
- 5y of experience as seed investor
- Holder of two Master’s degrees from prestigious Parisian universities :
- Master’s Degree in Financial and Institutional Organization (OFIS) at Panthéon-Sorbonne
- Master’s Degree in Tax Law at Paris-Descartes
- University Diploma in Accounting
Highlights
Redacted Labs will curate different vaults on top of Kandle. It allow exposure to Mangrove ecosystem across different markets. The first vaults deployed will target the BTC-USDC, ETH-USDC and USDT-USDC markets. Different vaults can be deployed to meet the needs of Mangrove users.
Vault Strategy
LP’s concentrated Vaults strategy is based on an optimized approach to the provision of liquidity on Mangrove through Kandel. Unlike a traditional approach where liquidity is spread across the entire price spectrum, this strategy aims to concentrate liquidity on specific price ranges to maximize returns.
Avoiding high-volatility phases
By using predictive models or on-chain volatility indicators, the vault can estimate upcoming periods of increased market turbulence. Before entering these phases, the strategy either broadens the range or fully exits the liquidity provision. This proactive approach helps prevent significant exposure during high-risk events, protecting against excessive impermanent loss.
Fee collection from traders
A critical benefit of concentrated liquidity is the ability to earn trading fees. By providing liquidity in a concentrated range, the vault maximizes fee generation from trades within that range. As the strategy dynamically adjusts the liquidity range based on market conditions, it ensures that liquidity is positioned where trading activity is highest. Even during periods of moderate price movement, this setup allows the vault to continue collecting fees without exposing itself to unnecessary risks.
Impermanent loss mitigation
Impermanent Loss (IL) occurs when the relative prices of tokens in a liquidity pool change significantly from when liquidity was initially provided. To reduce IL, this strategy employs several techniques while ensuring efficient capital use, even when liquidity is not actively deployed :
• Dynamic Asset Allocation: Unlike traditional LPs that maintain a strict 50-50 balance between the two assets, this strategy allows for flexible asset allocations when liquidity is not actively deployed in the pool. This means that users might not hold an even split between the two assets during times of withdrawal from the LP. By adjusting the allocation according to market conditions, the strategy reduces the risk of being overexposed to a volatile asset, helping mitigate potential impermanent loss.
• Yield Optimization through Aave: When the vault’s liquidity is not actively used in the pool, instead of keeping the assets idle, they are temporarily deposited into Aave or other lending protocols. This allows users to earn additional yield through lending interest, further enhancing the overall return on capital. By putting idle assets to work in low-risk lending platforms, the strategy ensures that capital is continuously productive, even when not used for trading purposes.
• Adaptive Range Management: When the asset price begins to move significantly outside of the initial liquidity range, the strategy adjusts the range or withdraws liquidity entirely. This helps protect the portfolio from substantial divergence between asset prices, which typically leads to impermanent loss. By rebalancing and redeploying assets only when it is strategically sound, the strategy minimizes exposure to IL while capturing trading fees during favorable conditions.
