Documentation

How the vaults work: liquidity, fees, and security.

Overview Providing liquidity Concentrated (V3) liquidity Impermanent loss What the vault does What the vault cannot do Security design Fees Access without this website Glossary

Overview

Each Reborn Compounder vault is a separate contract holding one concentrated-liquidity position on a Flare DEX. Funds are never pooled.

It reinvests trading fees, claims rFLR without the early-claim penalty, and can be run by an automatic keeper. Withdrawals go to the owner, and two exits are unconditional and free. Returns are not guaranteed: liquidity provision carries impermanent loss. Kinetic is a separate app: it supplies a lending market and compounds vested rFLR, with its own fee.

What providing liquidity means

A pool holds two tokens. Traders swap against it and pay a fee, which goes to liquidity providers in proportion to their share. It is not a price bet: income comes from other people's trading.

How concentrated (V3) liquidity works

Concentrated liquidity lets each provider pick a price range. Capital only works inside it:

In range it trades and earns fees; concentrating capital earns more per unit than spreading it.
Out of range it is inactive until price returns or the range is moved.
Width is a trade-off. Narrow earns more but exits sooner; wide earns less but lasts longer. The presets map to this.

As price crosses the range, the pool sells the rising token and buys the falling one. At either edge the position is all one token. That conversion is where impermanent loss comes from.

Impermanent loss

Selling the rising token and buying the falling one can leave a position worth less than holding the same two tokens. That gap is impermanent loss: it grows as price moves away from where liquidity was provided, and becomes realized if the position is closed before price returns.

Fees and rFLR are the compensation. They can exceed the loss in an active pool and fall short in a quiet one. In range means earning fees, not avoiding impermanent loss.

What the vault does

Functions

Holds the position in a single-owner contract. One owner per vault, no commingling.
Reinvests trading fees as they are collected.
Claims rFLR without the penalty. Only the vested part is withdrawn. The unvested part can be claimed early by the owner alone; it burns 50% and requires typed confirmation.
Optional keeper. If enabled, it checks about every 30 minutes and compounds trading fees and vested rFLR once they are worth at least 50 WFLR, then waits 6 hours. It does not move the range. Recenter is a separate step you confirm yourself.
Recenter preview. The withdrawal, any swap (with expected proceeds and impact), and the new range are shown before you confirm.

What the vault cannot do

Restrictions

Pay the keeper. Withdrawals go to the owner. The performance fee is the only amount that leaves elsewhere, and it is a cut of yield paid to the fee recipient fixed at creation.
Change its fee. Fixed at creation; there is no setter.
Block a withdrawal. On the Compounder, full withdrawal and NFT transfer run unconditionally, free, and cannot be paused. On Kinetic, withdraw and emergency exit redeem the supplied balance and cannot be blocked by the keeper. Kinetic can pause new deposits on a market. Funds already supplied can still be withdrawn.
Burn unvested rFLR on its own. The early-claim function only accepts owner-signed transactions.
Claim partner rewards such as APS. The vault claims rFLR. Other reward tokens paid to the position stay there until you take the NFT out and claim them on the DEX.
Guarantee returns or remove impermanent loss. It automates maintenance, not the economics.

Security design

Isolation. Every user gets their own contract. No shared pool, so a problem in one vault stays there.
Constrained keeper. The contract treats the keeper as untrusted. It can call only maintenance functions, and each price-sensitive action is checked against a 30-minute on-chain TWAP: if price deviates, the operation reverts. A compromised keeper can cause bounded slippage on one period's rewards, never touch principal, and is revocable.
Key separation. On the current factories the keeper is not the owner. It cannot change a fee, whitelist an exchange, or receive the fee.
Unconditional exits. Withdrawals do not depend on this site or the operator; the exits live in each vault (see below).
Testing. Unit, fuzz, and invariant tests run adversarial sequences, including a hostile keeper, and assert funds are conserved and owner-only. Contracts are also fork-tested against live Flare and scanned with static analysis on every change.

Audit status

Not audited by a third party, and no audit is planned. Size deposits accordingly.

Fees

The performance fee is a cut of realized earnings, taken when they are collected. Deposits, withdrawals, and principal are free.

Reborn Compounder, new vaults: 7.4% of collected trading fees and vested rFLR.
Kinetic, new vaults: 2.7% of vested rFLR when it is compounded. Lending interest stays in the supplied balance. A Kinetic vault earns that interest and rFLR. It does not earn trading fees.
The rate is fixed at creation and there is no setter. A vault opened earlier keeps its original rate. SparkDEX V4 vaults, and Compounder or Kinetic vaults from the previous factories, stay at 10% and pay the fee recipient set when they were created. The vault screen shows the rate for the vault you are viewing.
No earnings, no fee. Emergency exits are always free.
New vaults pay the fee to a burner. Once a day it buys FRB with the accrued fees and burns that FRB. The home screen adds up that FRB. The keeper has no access to the fee and cannot call the burn.

Accessing your vault without this website

Each vault is a Flare contract; this site is only an interface. If it went away, funds are still reachable on-chain. The vault address is shown under its name. When you create a vault, save that address. Open it on Flare Explorer, go to Contract → Write, and connect the owner wallet. A new vault is a minimal clone of verified contract code, so that page lists the vault's functions. A vault opened a moment ago can take a short time to show up there.

Reborn Compounder. Call emergencyWithdraw. The position, trading fees, and idle balances return in one transaction. Or call emergencyExitNFT to receive the liquidity NFT, then manage or claim it on the DEX.
Kinetic. Call emergencyWithdraw. It redeems the supplied balance and any idle tokens to your wallet. There is no liquidity NFT. A normal withdraw also works. Kinetic can pause new deposits. That pause does not block a withdrawal.

Glossary

Position / range: A deposit active only between two prices. In range earns fees; out of range is inactive and all one token.
Recenter: Moving the range back around the current price.
Impermanent loss: The gap between LPing and simply holding the two tokens; realized if closed before price returns.
WFLR: FLR in token form, usable by contracts.
rFLR: Monthly Flare rewards for liquidity providers. They vest over time; early claims burn 50% of the unvested part.
Performance fee: A cut of realized earnings, taken when they are collected. New Compounder vaults are 7.4%. New Kinetic vaults are 2.7%. Older vaults keep the rate set at creation. The vault screen shows that rate.
Keeper: Optional automation that checks about every 30 minutes and compounds once yield is worth at least 50 WFLR, then waits 6 hours. On the Compounder that yield is trading fees and vested rFLR. On Kinetic it is vested rFLR, and the keeper can swap only after the owner pins the swap fee. Until that pin, the vault screen says the keeper cannot compound. It does not recenter. It cannot withdraw and is revocable.
TWAP: A 30-minute on-chain average price used to validate automated actions.

Information only, not financial advice. App figures are estimates from on-chain data. Contracts are not third-party audited. Funds stay non-custodial in your vault and can be withdrawn anytime, free.

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