Managing positions
As of today, all liquidity for vault tokens lives in Uniswap pools. Your LP position is a Uniswap v3 position represented by an on-chain position NFT. You choose a fee tier (already fixed by the pool), a price range, and how much USDC and vault token to supply. You earn a share of swap fees while the market price stays inside your range. XVault does not custody your LP assets or operate a separate AMM.
Before you add liquidity
Verify you are adding to the canonical USDC ↔ vault token pool and the correct fee tier shown on the vault page. Adding liquidity to a different tier creates a separate pool that traders may not use.
Check spot price and depth on the Uniswap pool page. Note recent volume and typical ticket sizes to size your range.
Decide a range strategy: full-range for set-and-forget, or a narrow band around spot for higher fee density with more rebalancing.
Add liquidity on Uniswap, step by step
Open the Uniswap add-liquidity screen for the vault’s USDC ↔ vault token pair and the correct fee tier.
Connect your wallet and select the right network.
Approve USDC and the vault token if prompted. Approvals are one-time per token.
Choose Full range or Custom price range. Custom ranges only earn while price is inside the band.
Enter deposit amounts. For full range, the UI will compute balanced amounts. For a narrow range above or below spot, the UI may show effectively single-sided entry.
Review your share of pool, price coverage, and min/max price. Confirm the transaction.
After finality, your position appears in your wallet’s Uniswap Positions tab. Fees begin accruing immediately.
Depositing
In v3 you can effectively deposit single-sided liquidity by setting a band that starts at or above the current price (for selling vault token into USDC over time) or ends at or below the current price (for buying vault token with USDC over time). As price moves through your band, your inventory shifts.
Choosing and managing your range:
Full-range. Simple, always in range, lowest fee density per capital. Good for passive LPs or early, thin markets.
Centered narrow band. Higher fee density. Plan to recentre when price drifts. Keep a thin, wide “catch” band to keep earning during fast moves.
Directional bands. Place a range mostly above or below spot to accumulate one asset while earning fees on the way.
Fee collection and removals
Collecting fees. Use the Uniswap UI to collect at any time without removing liquidity. Fees are not auto-compounded.
Partial or full removal. Withdraw any percentage. You receive USDC and vault tokens per current pool composition across the in-range portion of your position.
Rebalancing and rolling
If the market price exits your band, the position stops earning and becomes concentrated in a single asset. Remove liquidity, then re-add around the new spot. Many LPs define triggers such as price leaving the band, inventory skew beyond a threshold, or a scheduled roll.
What to look out for
Correct pool and fee tier. Always verify pair addresses and the canonical fee tier from the vault page before supplying liquidity.
Out-of-range risk. When price leaves your band you stop earning and hold only one asset. Narrow bands require monitoring and timely re-centering.
Slippage and depth. Thin depth means higher impact for traders, which can reduce flow. Use the Uniswap UI to gauge spot, depth, and expected price impact for typical ticket sizes.
Single-sided behavior. Ranges that start above or below spot act like gradual selling or buying. Expect inventory to shift as price moves through your band.
Gas costs. Batch approvals, fee collections, and rebalances. Avoid frequent tiny edits that consume fees in gas.
Approvals hygiene. Review and revoke token allowances you no longer need using a trusted approvals manager.
Incident considerations. Uniswap pools do not pause. If a custodian pauses the vault token’s transfers, swaps will fail until transfers resume. Decide in advance how to position ranges ahead of maintenance or reopen.
No claim on RWAs. LPs earn swap fees only. Asset exits and yields accrue to vault token holders, not LPs.
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