Introduction to V3 Vaults

If you are not yet experienced with liquidity providing, check out this introductory article

https://finematics.com/liquidity-pools-explained/

Hippo V3 vaults are automated liquidity management vaults for Pancakeswap (PCS) V3 liquidity pools.

https://docs.pancakeswap.finance/products/pancakeswap-exchange/pancakeswap-pools

PCS V3 uses concentrated liquidity which allows a liquidity pool with smaller Total Value Locked (TVL) to support a much greater trading volume, however, in contrast to V2, V3 requires the Liquidity Providers (LP) to constantly adjust the price range where their liquidity will be active.

PCS Price Range Configuration

In addition to calibrating price range, LPs are also required to harvest $CAKE farming rewards and collect the swap fees manually as these are not automatically credited to the LP position.

For a retail investor, these tasks take a lot of time and the complexity can be daunting, Hippo V3 vaults automate all that away and transforms a complicated and time-consuming activity into profitable passive investing!