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Multi-Strategy Vault Allocation

Overview

CreatorVault activation now deploys the underlying AKITA tokens into 4 equal parts (12.5M each):

  1. 12.5M → AKITA/WETH 1% LP (Uniswap V3 concentrated liquidity)
  2. 12.5M → AKITA/USDC 1% LP (Uniswap V3 concentrated liquidity)
  3. 12.5M → Ajna Lending (Ajna protocol lending pool)
  4. 12.5M → Idle in Vault (For future use/flexibility)

How It Works

The Math

Total Deposit: 50M AKITA
Vault minimumTotalIdle: 12.5M

Deployable = 50M - 12.5M = 37.5M

Strategy Weights (equal):
- AKITA/WETH: 100
- AKITA/USDC: 100
- Ajna: 100
Total: 300

Each strategy allocation:
37.5M * (100 / 300) = 12.5M ✓

The Flow (7 Steps in 1 TX)

User clicks "Launch Auction" → Smart Wallet executes:

1. Approve 50M AKITA to vault
2. Deposit 50M AKITA to vault

3. Deploy to strategies:
- forceDeployToStrategies() called
- Vault keeps 12.5M idle (minimumTotalIdle)
- Distributes 37.5M to 3 strategies:
* 12.5M → AKITA/WETH strategy
* 12.5M → AKITA/USDC strategy
* 12.5M → Ajna strategy

4. Approve vault shares to wrapper
5. Wrap shares → 50M wsAKITA
6. Approve 25M wsAKITA to CCA
7. Launch CCA auction (25M wsAKITA)

Result:
- 50M AKITA deployed across 4 destinations
- 25M wsAKITA in CCA auction
- 25M wsAKITA in user wallet

Prerequisites

1. Deploy Strategy Contracts

AKITA/WETH 1% Strategy

# Deploy Uniswap V3 concentrated liquidity strategy
forge create CreatorCharmStrategy \
--rpc-url base \
--private-key $PRIVATE_KEY \
--constructor-args \
$AKITA_TOKEN \
$WETH \
$AKITA_VAULT \
1 \ # 1% fee tier
...

AKITA/USDC 1% Strategy

# Deploy Uniswap V3 concentrated liquidity strategy
forge create CreatorCharmStrategy \
--rpc-url base \
--private-key $PRIVATE_KEY \
--constructor-args \
$AKITA_TOKEN \
$USDC \
$AKITA_VAULT \
1 \ # 1% fee tier
...

Ajna Lending Strategy

# Deploy Ajna lending strategy (TODO: implement)
forge create AjnaLendingStrategy \
--rpc-url base \
--private-key $PRIVATE_KEY \
--constructor-args \
$AKITA_TOKEN \
$AJNA_POOL \
$AKITA_VAULT \
...

2. Configure Vault

// Add strategies with equal weights
vault.addStrategy(akitaWethStrategy, 100); // weight = 100
vault.addStrategy(akitaUsdcStrategy, 100); // weight = 100
vault.addStrategy(ajnaStrategy, 100); // weight = 100
// Total weight = 300

// Set minimum idle to keep 12.5M in vault
vault.setMinimumTotalIdle(12_500_000 * 10**18); // 12.5M AKITA

// Verify configuration
require(vault.totalStrategyWeight() == 300, "Wrong weights");
require(vault.minimumTotalIdle() == 12_500_000 * 10**18, "Wrong idle");

3. Update Frontend Config

// frontend/src/config/contracts.ts
export const AKITA = {
...
strategies: {
akitaWethLP: '0x...' as const, // Deployed AKITA/WETH strategy
akitaUsdcLP: '0x...' as const, // Deployed AKITA/USDC strategy
ajna: '0x...' as const, // Deployed Ajna strategy
},
}

Strategy Details

1. AKITA/WETH 1% Strategy

Type: Uniswap V3 Concentrated Liquidity (via Charm Finance)

Benefits:

  • Concentrated liquidity = Higher capital efficiency
  • 1% fee tier = Higher fees for volatile pairs
  • Charm auto-rebalances to stay in range
  • Proven, audited infrastructure

Expected APY: 20-40% (depends on volume)

2. AKITA/USDC 1% Strategy

Type: Uniswap V3 Concentrated Liquidity (via Charm Finance)

Benefits:

  • Stablecoin pair = Less impermanent loss
  • 1% fee tier = Good for medium volatility
  • Charm auto-rebalances
  • Diversified liquidity

Expected APY: 15-30% (depends on volume)

3. Ajna Lending Strategy

Type: Ajna Protocol Lending Pool

Benefits:

  • No liquidations (novel design)
  • Permissionless pool creation
  • Flexible interest rates
  • No oracles needed

Expected APY: 5-15% (variable interest)

Status: 🚧 Strategy not yet implemented

4. Idle in Vault (12.5M)

Purpose:

  • Emergency reserves
  • Future strategy deployment
  • Immediate withdrawal liquidity
  • Flexibility for adjustments

Activation UI

Updated Flow Display

┌─────────────────────────────────────────┐
│ 🚀 Launch AKITA Auction │
│ │
│ ⚡ What Happens in One Transaction: │
│ │
│ 1. Deposit 50M AKITA │
│ │
│ 2. Deploy to Strategies: │
│ ┌─────────────┬─────────────┐ │
│ │ 12.5M → │ 12.5M → │ │
│ │ AKITA/WETH │ AKITA/USDC │ │
│ │ 1% │ 1% │ │
│ ├─────────────┼─────────────┤ │
│ │ 12.5M → │ 12.5M → │ │
│ │ Ajna │ Keep idle │ │
│ │ lending │ │ │
│ └─────────────┴─────────────┘ │
│ │
│ 3. Wrap to wsAKITA (50M shares) │
│ │
│ 4. Launch CCA (25M wsAKITA auction) │
│ │
│ [ ⚡ Launch Auction (1-Click) ] │
└─────────────────────────────────────────┘

Success Screen

✓ Auction Launched Successfully!

Auction: 25M wsAKITA (7 days)
Your Holdings: 25M wsAKITA

Vault AKITA Allocation:
- AKITA/WETH 1%: 12.5M
- AKITA/USDC 1%: 12.5M
- Ajna Lending: 12.5M
- Idle in Vault: 12.5M

Deployment Checklist

Phase 1: Strategy Development

  • Implement AKITA/WETH 1% strategy
  • Implement AKITA/USDC 1% strategy
  • Implement Ajna lending strategy
  • Test strategies on Base testnet
  • Audit strategies (if needed)

Phase 2: Deployment

  • Deploy AKITA/WETH strategy to Base
  • Deploy AKITA/USDC strategy to Base
  • Deploy Ajna strategy to Base
  • Verify contracts on Basescan

Phase 3: Vault Configuration

  • Add strategies to vault
  • Set equal weights (100 each)
  • Set minimumTotalIdle to 12.5M
  • Test with small amount first

Phase 4: Frontend Update

  • Update AKITA.strategies config
  • Test activation flow
  • Deploy to Vercel

Phase 5: Launch

  • Announce multi-strategy approach
  • Monitor first activation
  • Track strategy performance
  • Adjust weights if needed

Strategy Management

Rebalancing

Strategies are rebalanced automatically:

  • Charm strategies: Keepers rebalance when price moves
  • Ajna strategy: Interest rates adjust automatically
  • Vault: Can manually rebalance between strategies via updateDebtRatio()

Monitoring

Key metrics to track:

1. Strategy APY:
- AKITA/WETH LP fees
- AKITA/USDC LP fees
- Ajna lending interest

2. Impermanent Loss:
- Track AKITA price vs ETH/USDC
- Compare to holding

3. Utilization:
- How much of each strategy is deployed
- Idle balance over time

4. Total Returns:
- Combined yield from all strategies
- Compare to alternatives

Emergency Actions

If a strategy performs poorly:

// 1. Remove strategy from queue
vault.removeStrategyFromQueue(badStrategy);

// 2. Withdraw all funds
vault.withdrawFromStrategy(badStrategy, type(uint256).max);

// 3. Add new strategy
vault.addStrategy(newStrategy, 100);

// 4. Redeploy funds
vault.forceDeployToStrategies();

Benefits of Multi-Strategy

Diversification

  • ✅ Not dependent on single liquidity source
  • ✅ Spread risk across 4 destinations
  • ✅ Different yield mechanisms

Yield Optimization

  • ✅ Capture fees from 2 trading pairs
  • ✅ Earn lending interest from Ajna
  • ✅ Keep reserves for opportunities

Flexibility

  • ✅ 12.5M idle = Quick withdrawals
  • ✅ Can adjust strategy weights
  • ✅ Can add/remove strategies

Capital Efficiency

  • ✅ 75% deployed (37.5M / 50M)
  • ✅ 25% idle for flexibility
  • ✅ Optimal balance

FAQ

Q: Why 1% fee tier for LP?

A: 1% is optimal for volatile assets like creator coins. Higher fees compensate for impermanent loss.

Q: Why keep 12.5M idle?

A: For immediate withdrawals, emergency reserves, and future strategy deployment flexibility.

Q: Can we adjust the allocation later?

A: Yes! Vault owner can update strategy weights anytime via updateStrategyWeight().

Q: What if Ajna strategy isn't ready?

A: Deploy with 2 strategies temporarily. Add Ajna later and rebalance.

Q: Who manages the strategies?

A: Charm strategies are managed by Charm keepers. Ajna adjusts rates automatically. Vault owner can rebalance manually.

Q: What are the risks?

A:

  • Impermanent Loss: AKITA price changes vs ETH/USDC
  • Smart Contract Risk: Strategy contract bugs
  • Oracle Risk: (Minimal - Charm uses TWAP, Ajna is oracle-less)

Resources


Summary

4-way split: 12.5M each to 4 destinations ✅ Automated allocation: One function call deploys all ✅ Diversified yield: LP fees + lending interest ✅ Flexible: 12.5M idle for adjustments ✅ Account abstraction: All in 1 gasless transaction

Result: Optimal capital efficiency with diversified risk! 🚀