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Orange FinanceAn Overview of Liquidity Management Vaults for Uniswap v3
Uniswap v3 has significantly improved capital efficiency compared to the constant product AMM. However, this improvement comes at the expense of user-friendliness, meaning that liquidity providers (LPs) have to deal with complex tasks such as setting price ranges and frequent rebalancing. To solve this issue, several liquidity management protocols have been launched that offer optimal liquidity strategies for Uni v3 to retail LPs. In this article, we aim to provide an overview of the liquidit...
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This is not the final report but the follow-up report on the incident that occurred on January 8th. We will continuously provide updates on significant findings for transparency.Incident OverviewThe incident was not primarily caused by technical vulnerabilities in the smart contracts.Date: January 8, 2025Incident: Exploitation of Multi-Sig Misconfiguration, resulting in the theft of $830,000 worth of assets.On January 8, 2025, all active vaults on Orange Finance were exploited, resulting in t...
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Orange FinanceAn Overview of Liquidity Management Vaults for Uniswap v3
Uniswap v3 has significantly improved capital efficiency compared to the constant product AMM. However, this improvement comes at the expense of user-friendliness, meaning that liquidity providers (LPs) have to deal with complex tasks such as setting price ranges and frequent rebalancing. To solve this issue, several liquidity management protocols have been launched that offer optimal liquidity strategies for Uni v3 to retail LPs. In this article, we aim to provide an overview of the liquidit...
Orange FinanceOrange rebrands to LP.fun — Transition Plan, Key Dates, and Withdrawals
Orange FinanceOrange Finance Jan 9th Follow-up Investigation Report on the Incident
This is not the final report but the follow-up report on the incident that occurred on January 8th. We will continuously provide updates on significant findings for transparency.Incident OverviewThe incident was not primarily caused by technical vulnerabilities in the smart contracts.Date: January 8, 2025Incident: Exploitation of Multi-Sig Misconfiguration, resulting in the theft of $830,000 worth of assets.On January 8, 2025, all active vaults on Orange Finance were exploited, resulting in t...
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Today, we are excited to announce that Orange Finance is finally launching our dual-liquidity vaults on Berachain in collaboration with Stryke.
Our vaults help LPs capture more value in AMMs and bootstrap liquidity in the Berachain ecosystem.
The following vaults are now live:
WETH-HONEY Vault
WBTC-HONEY Vault
WBERA-HONEY Vault
We’re also excited to share that Stryke will provide a total of 15,000 $BERA in rewards to these vaults on Orange over the next two months.
By supplying liquidity through Orange’s vaults, users will earn $BERA rewards from Stryke for the next 8 weeks.
The total of 15,000 $BERA is allocated among the vaults as follows:
7,000 $BERA for WETH-HONEY Vault (875 $ BERA/week)
5,000 $BERA for WBTC-HONEY Vault (625 $ BERA/week)
3,000 $BERA for WBERA-HONEY Vault (375 $ BERA/week)
Rewards are distributed weekly based on each user’s share of the total vault deposits.
Curious about potential APRs? Check out the APR simulation spreadsheet to see how APR might vary with different TVL scenarios.
* This simulation displays only the APR from BERA token rewards and does not include swap fees or premium earnings.
Our dual-liquidity vault manages the liquidity position in the CLAMM pools on Stryke, which offers an options platform on Berachain.
Stryke is an options platform that leverages liquidity positions on AMMs, which built the options market on top of Kodiak on Berachain.
Unlike traditional AMMs that only earn swap fees, Stryke boosts capital efficiency by letting LPs earn swap fees on liquidity at the current price and premium fees on idle positions, allowing LPs to achieve higher capital efficiency.
Managing liquidity for Stryke involves similar methods to v3 AMM rebalancing but is more complex. Our vault automates the entire process, streamlining the experience for LPs.
1. Tick-Level Liquidity Management
Orange manages liquidity at the tick level. It checks each tick during updates and, if liquidity is locked in derivatives, it can’t be withdrawn until settled. Orange then burns and reallocates that liquidity once it’s free.
2. Tick Interval Adjustment
To prevent excessive gas fees when expanding ranges, Orange adjusts tick liquidity intervals. Still, it manages approximately 70~100 liquidity positions simultaneously.
3. Simplified Performance Measurement
Managing numerous liquidity positions and tracking their performance can be labor-intensive. Orange simplifies this by wrapping these positions into an ERC20 token, allowing for streamlined performance tracking as a Vault.
Vault Strategy
Every three days, our vault rebalances its liquidity position based on a targeted range derived using implied volatility (IV) calculations (inspired by Panoptic’s methodology). The current ranges for each vault are:
WETH-HONEY: +-27.42%
WBTC-HONEY: +-20.23%
WBERA-HONEY: +-49.31%
Orange Finance is an automated liquidity management protocol for normal concentrated-type liquidity AMM and LPDfi protocols (which utilises concentrated liquidity to offer derivative products).
Effortless Liquidity Management on LPDfi protocols
Check out the Orange Finance community on Discord - hang out with 5823 other members and enjoy free voice and text chat.
Today, we are excited to announce that Orange Finance is finally launching our dual-liquidity vaults on Berachain in collaboration with Stryke.
Our vaults help LPs capture more value in AMMs and bootstrap liquidity in the Berachain ecosystem.
The following vaults are now live:
WETH-HONEY Vault
WBTC-HONEY Vault
WBERA-HONEY Vault
We’re also excited to share that Stryke will provide a total of 15,000 $BERA in rewards to these vaults on Orange over the next two months.
By supplying liquidity through Orange’s vaults, users will earn $BERA rewards from Stryke for the next 8 weeks.
The total of 15,000 $BERA is allocated among the vaults as follows:
7,000 $BERA for WETH-HONEY Vault (875 $ BERA/week)
5,000 $BERA for WBTC-HONEY Vault (625 $ BERA/week)
3,000 $BERA for WBERA-HONEY Vault (375 $ BERA/week)
Rewards are distributed weekly based on each user’s share of the total vault deposits.
Curious about potential APRs? Check out the APR simulation spreadsheet to see how APR might vary with different TVL scenarios.
* This simulation displays only the APR from BERA token rewards and does not include swap fees or premium earnings.
Our dual-liquidity vault manages the liquidity position in the CLAMM pools on Stryke, which offers an options platform on Berachain.
Stryke is an options platform that leverages liquidity positions on AMMs, which built the options market on top of Kodiak on Berachain.
Unlike traditional AMMs that only earn swap fees, Stryke boosts capital efficiency by letting LPs earn swap fees on liquidity at the current price and premium fees on idle positions, allowing LPs to achieve higher capital efficiency.
Managing liquidity for Stryke involves similar methods to v3 AMM rebalancing but is more complex. Our vault automates the entire process, streamlining the experience for LPs.
1. Tick-Level Liquidity Management
Orange manages liquidity at the tick level. It checks each tick during updates and, if liquidity is locked in derivatives, it can’t be withdrawn until settled. Orange then burns and reallocates that liquidity once it’s free.
2. Tick Interval Adjustment
To prevent excessive gas fees when expanding ranges, Orange adjusts tick liquidity intervals. Still, it manages approximately 70~100 liquidity positions simultaneously.
3. Simplified Performance Measurement
Managing numerous liquidity positions and tracking their performance can be labor-intensive. Orange simplifies this by wrapping these positions into an ERC20 token, allowing for streamlined performance tracking as a Vault.
Vault Strategy
Every three days, our vault rebalances its liquidity position based on a targeted range derived using implied volatility (IV) calculations (inspired by Panoptic’s methodology). The current ranges for each vault are:
WETH-HONEY: +-27.42%
WBTC-HONEY: +-20.23%
WBERA-HONEY: +-49.31%
Orange Finance is an automated liquidity management protocol for normal concentrated-type liquidity AMM and LPDfi protocols (which utilises concentrated liquidity to offer derivative products).
Effortless Liquidity Management on LPDfi protocols
Check out the Orange Finance community on Discord - hang out with 5823 other members and enjoy free voice and text chat.
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