Active vaults vs. Community vaults - what’s the difference?

A51 Finance
2 min readMay 17, 2023

In case you hadn’t noticed, Unipilot has two main types of vault: So what are they and what are the key differences?

Actively-Managed Vaults

These vaults are created by and managed by Unipilot. This means the token pair has passed our QC checks to determine if the project is legitimate and that the pair is likely to offer ongoing returns for LPs.

The protocol also rebalances these vaults when necessary so that you don’t stop earning and don’t have to bear the cost of rebalancing. Just sit back and relax while earning real yield! You can find all of these vaults by visiting the dApp and filtering for Actively Managed.

Community Vaults

A unique feature of Unipilot is that it is a universal protocol, meaning that it can manage liquidity for any token pair and not just those created by the Unipilot team.

This allows our users to easily earn yield from any token pair without needing permission from a centralized team. These Community vaults are created by our users, so one thing to consider is that they have not passed any Unipilot QC checks. The Unipilot protocol does not rebalance these vaults, but makes it easier for users to do so via the one-click rebalance option on the front-end.

Community vaults can easily be created on the Add Liquidity page. Simply select the pair and the fee tier and then click Create Vault. Note that gas costs for creating a vault are higher than simply adding liquidity.

Interestingly, the second-highest grossing vault of all time on our Ethereum dApp is a Community vault: XMON/ETH, a pair which was only created a few months ago but has already earned LPs $33,000 of fees.

For more tips on providing liquidity on Unipilot, check out our Concentration Preferences article.

Quick Links

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