Dratewka Vaults

The team:
Sebastian - product design
Kuba - smart contracts and frontend
Czarek - automation and backend

SOURCE: https://github.com/lebrande/dragon-swap-lp-provider/blob/main/SOURCE.md

Github: https://github.com/lebrande/dragon-swap-lp-provider
You'll find all the instructions how to run it in README - just head the repo and scroll down.

Video: https://www.youtube.com/watch?v=eAvnHT3FzQc

The Problem: Most retail users don’t make money as liquidity providers. Protocols like Uniswap V3 require two-token deposits and manual price range settings. When the market moves out of range, users stop earning fees and often suffer impermanent loss. For most newcomers, providing liquidity ends in disappointment instead of profit.

Our Solution – Vaults on DragonSwap. We introduce automated liquidity vaults for DragonSwap. Users deposit a single token, and the vault acts as the liquidity provider. Positions are automatically managed and rebalanced, fees are optimized, and risks are shared across depositors.

Key Benefits

• Single-token deposits with simplified UX

• Automated range management (no manual settings needed)

• Optimized APR through continuous rebalancing

• Seamless integration into the DragonSwap interface as a new “Vault” tab

• Fair and transparent distribution of rewards

ImpactVaults transform liquidity provision from a losing game for most users into a simple, accessible, and potentially profitable experience. With this solution, DragonSwap can become the first DEX to offer self-managing pools that give retail users a real chance to earn.

🔧 Technical Description

For DragonSwap bounty

• We built a liquidity vault that users can deposit into to gain automated LP exposure across DragonSwap UniV3 pools.

• The vault optimizes placement, rebalances positions, harvests fees, and manages risk, so depositors get passive, diversified exposure without manual operations.

Strategy highlights:

• Concentrated-liquidity management for UniV3 using volatility-aware ranges and threshold-based re-centering.

• Passive ratio management for UniV2 pools with periodic rebalancing.

• Single-sided deposits/withdrawals with internal zaps to the correct token mix.

Technical notes:

• Core contract: packages/hardhat/contracts/DragonSwapLpProviderVault.sol

• Tested with Hardhat unit tests and fork tests.

• Interacted via Scaffold-ETH debug UI for quick validation of deposits, withdrawals, and fee harvesting.

• Why Automated LP Is Hard and How to Solve It: https://github.com/lebrande/dragon-swap-lp-provider/blob/main/PROJECT.md

For Scaffold-ETH bounty

• Development was test-driven, with Hardhat tests as the core of implementation.

• Coverage includes deposits, withdrawals, fee harvesting, rebalancing logic, and simulations on Sei chain fork.

• We leveraged Scaffold-ETH 2 stack for fast iteration: yarn test + yarn deploy, using the built-in debug UI to call contract functions and validate behavior alongside the test suite.

For ETH Warsaw bounty

Value proposition:One-click, automated liquidity provisioning on DragonSwap that reduces operational complexity, improves capital efficiency (especially in UniV3), and transparently manages fees and risk for depositors.

Target group:

• Individual LPs

• DAO treasuries

• Token teams seeking sustained liquidity

• Strategy curators plugging in differentiated LP algorithms

Revenue streams:

• Configurable protocol fees (e.g., small management fee on TVL and/or performance fee on realized trading fees)

• Optional keeper rebates

• White-label vaults for token projects

Costs:

• Automation gas

• Audits/security reviews

• Monitoring & infrastructure

• Ongoing strategy research and tuning

Business Model Canvas (abridged):

• Key partners: DragonSwap, RPC/infra providers, keeper networks

• Key activities: Strategy research, on-chain integrations, monitoring, risk management

• Key resources: Smart contracts, backtesting models, operational runbooks

• Customer relationships: Non-custodial, transparent on-chain accounting, clear documentation

• Channels: DragonSwap ecosystem

• Customer segments: Asset managers, market makers, LPs, DAOs, token issuers, advanced DeFi users

• Cost structure: Development, audits, infra, keeper ops

• Revenue: Protocol fees and white-label arrangements

Links:

- Figma: https://www.figma.com/design/DApvfs72kKutgjR7rJ5wR0/DragonSwap?node-id=0-1&t=Too4H0AnHZRgUNxZ-1

- Canva: https://www.canva.com/design/DAGyPgOaJ8c/PDexz4DaytEdt8YmBcTVUQ/edit