How it works

Once you deposit your LP tokens into a Nemo LP Vault, a series of sophisticated, automated processes begins:

  1. User Deposit: You deposit your LP tokens, obtained from an external DEX (like Momentum), into a Nemo Vault.

  2. Concentrated Liquidity Market Making (CLMM): The vault deploys your LP position within a specific price range on the DEX, starting to earn trading fees and liquidity mining rewards (e.g., $SUI).

  3. Automated Harvesting: The vault's strategy bot constantly monitors claimable rewards. Once a certain threshold is met (considering both the amount of rewards and gas costs), it automatically triggers a harvest operation, collecting all rewards into the vault's strategy contract.

  4. Compounding: The harvested reward tokens are automatically swapped in the market for the two underlying assets needed to create the LP (e.g., selling $SUI rewards for more suiUSDT and USDC).

  5. Adding Liquidity: The converted assets are used to increase your original LP position, making your principal larger and enabling you to earn more in the next round.

  6. Smart Rebalancing: This is the core of the strategy. When the market price is about to move outside the vault's set liquidity range, the strategy automatically executes the sequence of "withdraw liquidity → swap a portion of the assets → re-add liquidity around the new price." This ensures your capital remains highly efficient at earning fees.

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