I'm excited to announce the creation of Vault 5464, an automated stablecoin & blue chip liquidity pool supply vault on the Arbitrum blockchain.
Liquidity pools have come a long way since they first enabled tokenholders to activate their assets for yields. On platforms like DexFi, vaults like Vault 5464 allow tokenholders to deposit into a fund and receive a token representing their share of the vault. Their deposit is used provide liquidity across multiple pools and exchanges, and even chains, where it earns fees that are either compounded back into the fund, or paid out as profits to fund shareholders. Notably, the positioning within the vault is set at vault creation, and cannot be changed afterward. Additionally, while the vault creator earns 1% of performance fees, depositors maintain custodianship of their deposit, increasing the trustability of the system.
Vault 5464 deploys liquidity into carefully structured concentrated liquidity positions. Rather than spreading liquidity thinly across all price levels, assets are placed where they are most likely to generate yield. Vault 5464 participates in pools swapping BTC and USDC, ETH and USDC, and USDC and USDT. Earnings from swap fees are then harvested and compounded back into the fund, accelerating growth.
Until recently, managing these positions required continuous oversight: adjusting price ranges, rebalancing exposure, and manually compounding earnings.
DexFi's automations remove these inefficiencies, enabling a structured, optimized approach to liquidity management, allowing depositors to focus on the structure of the fund.
Vault 5464 takes advantage of these automations to force appreciation of a fund holding, at initiation, 57% stablecoins, 24% BTC, and 19% ETH, distributed across liquidity pools on PancakeSwap and UniSwap. By focusing on the core tokens of the DeFi economy on the Arbitrum blockchain, Vault 5464 enables low-cost participation in liquidity provisioning while limiting risk of impermanent loss. While many vaults on DexFi and elsewhere focus on memecoins or other more speculative elements of crypto, in exchange for exceptionally high yields, Vault 5464's exclusive focus on USDC, USDT, BTC, and ETH, makes it a notably low-risk application of these new liquidity management tools, with a signficantly lower minimum deposit than would be required if trying to do it alone.
Deposits to Vault 5464 can be made in USDC or ETH on the Arbitrum chain, in exchange for Vault 5464 tokens. As of launch, 1 VT5464 token is $26.92, representing an equivalent holding of USDC, USDT, BTC, and ETH. With Arbitrum's low transaction fees, purchasing fractional shares is feasible. The fund has a total value locked (TVL) of $454USD, demonstrating the low barrier of participation in these parts of the DeFi economy. The daily yield of rewards is currently 0.23%, translating to an APY of 154%.
Vault 5464 exists because I believe in the viability of structured, automated liquidity provisioning. Rather than managing multiple liquidity positions manually, I created this fund to streamline my own participation. Because of how DexFi vaults work, I cannot modify the fund’s strategy or access deposited funds—anyone who participates retains full custodianship of their assets and simply benefits from the same automated, optimized liquidity structure that I use myself. The only benefit I receive from others joining is increased compounding frequency and the 1% of performance fees built into the vault’s design. For those who share my belief in using liquidity provisioning for asset growth, Vault 5464 offers a way to access automated, diversified liquidity management without requiring significant capital or active oversight.
If you have any questions about Vault 5464, how it works, or liquidity provisioning in general, feel free to ask. DeFi is constantly evolving, and while this vault is designed to operate transparently and autonomously, I’m always happy to discuss the strategy behind it and help clarify any details for those interested, regardless of if you are considering depositing.
