Proposal: Smart LP Vaults with Auto-Rebalancing & Strategy Templates

Proposals
1

TL;DR

Introduce Smart LP Vaults that automate liquidity provision on DLMM/DAMM. Instead of manually adjusting ranges and monitoring fees, users can choose from simple strategy templates (Delta-Neutral, Range Optimiser, Stable Yield). This lowers the barrier for new LPs, creates stickier TVL, and differentiates Meteora with unique vault offerings.

Problem

  • Many LPs find managing liquidity ranges in DLMM/DAMM intimidating or time-consuming.

  • Manual rebalancing increases gas/transaction costs and makes it easy for users to “set ranges wrong” and lose potential yield.

  • Competing platforms often attract passive users with easier vault products, while Meteora could stand out with smarter, community-driven strategies.

Proposed Solution

Launch a Smart Vault framework within Meteora that allows LPs to allocate capital into pre-set strategies, with auto-rebalancing logic built in.

Initial template ideas:

  1. Delta-Neutral Vault — Balances asset exposure to minimise directional risk, harvesting fees while rebalancing when thresholds are crossed.

  2. Range Optimiser Vault — Adjusts liquidity width dynamically: tight during calm markets, wide during volatile moves.

  3. Stable Yield Vault — Prioritises minimal impermanent loss, ideal for risk-averse or stablecoin-focused LPs.

Why This Matters

  • Accessibility: Brings in retail LPs who want passive, plug-and-play solutions.

  • TVL Stickiness: Users are less likely to withdraw if their capital is auto-managed.

  • Community Growth: Opens the door for strategy creators (DAO contributors or partners) to design, test, and share new vaults.

  • Differentiation: No other Solana protocol currently offers DAO-curated, modular vault strategies on DLMM/DAMM.

Implementation Notes

  • Start small: Launch with 2–3 Meteora-built templates, audited and battle-tested.

  • Community module system: Over time, allow DAO or community developers to submit strategies. Performance fees could be split between strategy creator + protocol treasury.

  • Revenue tie-in: Smart Vaults can charge a small management or performance fee that flows back into MET buybacks, treasury growth, or staker rewards.

  • Transparency: All strategy logic open-sourced and audited before mainnet deployment.

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