How it works

I. How it works

Nemo Vaults aims to be a one-stop, intelligent yield solution on the SUI network, enabling every user to easily participate in and benefit from complex concentrated liquidity market making (CLMM) strategies.

The Lifecycle of Your Deposit

Your funds within Nemo Vaults undergo a continuous, automated cycle of "earning yield → optimizing position." The entire process can be broken down into three core phases:

Phase 1: Seamless Deposit & LP Creation

This is the starting point of your interaction with Nemo Vaults.

1. User Deposit: You do not need to hold complex LP tokens in advance. With our built-in "Zap In" feature, you can directly deposit a single asset from the trading pair (e.g., depositing only USDC or only suiUSDT).

2. Automated LP Creation: Upon receiving your deposit, Nemo Vaults' smart contracts automatically handle all subsequent steps. They calculate the current optimal asset ratio, swap a portion of your deposited single asset for the other asset on the underlying DEX (Momentum), and then combine both to create a concentrated liquidity LP position on your behalf.

3. Position Management: Once the LP is successfully created, its management is fully handed over to Nemo Vaults' strategy contract. In return, you receive nevLPToken, which represents your share in the vault. The value of this nevLPToken continuously increases as the assets within the vault appreciate.

Phase 2: The Automated Yield Compounding Loop

This is the core loop where the Vaults continuously generate passive income for you while your position is In Range.

1. Profit Generation: Your LP position on Momentum begins to earn two core types of yield:

   • Trading Fees: Fees paid by traders executing swaps within the liquidity pool.

   • Farming Incentives: (If applicable) Additional token rewards provided by Momentum or other project partners to incentivize liquidity.

2. Automatically Harvest: The Nemo Vault constantly monitors the rewards accumulated by your position. Once the earnings reach an optimal threshold (considering both the amount of rewards and the on-chain Gas costs), a bot automatically triggers a harvest operation.

3. Auto-compounding: All harvested rewards (fees and incentive tokens) are automatically swapped in the market for the two base assets required by the LP. They are then reinvested into your original liquidity position, thereby increasing your principal.

This "Generate → Harvest → Compound" cycle runs continuously and automatically, allowing your earnings to grow exponentially through compounding. This is the fundamental reason for the constantly increasing value of your nevLPToken.

Phase 3: The Intelligent Rebalancing Engine

This is where the core value of Nemo Vaults lies—the intelligent engine that handles situations when the price moves Out of Range.

1. Real-time Monitoring: The vault's strategy monitors the real-time market price 24/7, comparing it against the narrow price range set for your current LP position.

2. Rebalancing Triggered: When market volatility causes the price to move outside your position's range, it stops earning trading fees. This event immediately triggers Nemo's "Intelligent Position Adjustment System."

3. Intelligent Evaluation: The system activates instantly. Instead of simply moving the position back to the current price, it calculates a new, more optimal price range by analyzing a series of complex market indicators (e.g., recent price volatility, trading volume, market depth, etc.).

4. Executing Rebalance: Once the new optimal range is determined, the Nemo Vaults contract automatically executes a series of on-chain operations:

   • Withdraws your entire liquidity position from Momentum.

   • Swaps a portion of the two withdrawn assets to match the center point of the new price range.

   • Re-establishes your LP position within the new optimal price range.

5. Resuming Work: After the rebalance is complete, your position is active and "In Range" again, seamlessly transitioning back to the automated yield compounding loop in Phase 2 to continue earning yield for you.

II. Nemo Vaults User Guide

Step 1: Explore and Select a Vault

First, visit the official Nemo protocol website and click on the [Vaults] tab in the top navigation bar to go to the vaults overview page. Here, you will see:

• Vaults List: All available vaults are clearly displayed in a card format.

• Key Information at a Glance:

  • Asset Type: E.g., suiUSDT-USDC, which tells you what kind of assets this vault manages.

  • APY (Annual Percentage Yield): An estimated, dynamic annual rate of return, a key metric for evaluating a vault's attractiveness.

  • TVL (Total Value Locked): Shows how much capital is currently working within this vault.

  • Source Protocol: Tells you which DEX the vault's underlying liquidity is built on, e.g., Momentum.

➡️ Your action: Browse the list and, based on the assets you hold and your APY preference, click on the vault card that interests you to proceed to the next step.

Step 2: Depositing Funds

After clicking, you will be taken to the vault's details and transaction page. This is where you perform all core operations.

2.1 Understand the Details Page Before depositing, you can take a moment to review the detailed information:

• Core Metrics: The top of the page displays the vault's total TVL, real-time APY, your personal position value (Your Position), and your cumulative earnings (Your Earnings).

• LP Breakdown: Shows the current value ratio of the two tokens within the vault.

• Strategy Overview: Briefly introduces the vault's automated strategy.

• Historical Charts: The charts at the bottom of the page allow you to view historical APY trends.

2.2 Start Depositing On the right side of the page, find the [Deposit] module. We offer two convenient deposit modes:

Mode 1: Single-Asset Deposit (Zap In) - Recommended for Beginners This is the simplest and most recommended method. You don't need to acquire both tokens yourself; Nemo handles everything for you automatically.

• Ensure the toggle is set to [Zap In] mode.

• Click the asset dropdown menu to select the single asset you wish to deposit (e.g., SUI or xSUI).

• Enter the amount you want to deposit in the input box, or click the Max button to input the entire balance.

• Review Information: The system will automatically estimate the amount of nevLP tokens you will receive. nevLP is your share certificate in this vault and is very important.

• Click the green [✅ Deposit] button.

• Confirm the transaction in the wallet pop-up.

Mode 2: Dual-Asset Deposit (Manual) - For Advanced Users If you already have both tokens in the appropriate ratio in your wallet, you can use this mode.

• Switch the toggle to [Manual] mode.

• Enter the amounts for both tokens you wish to deposit.

• The subsequent steps are the same: review the information, click the button, and confirm the transaction.

Step 3: View and Manage Your Position

Want to see how your vault is performing? Click on [My portfolio] in the top navigation bar. On your portfolio page, switch to the [Vault Positions] tab.

• Core Data: Here, you can see the total value of your positions across all vaults (Vaults Positions).

• Position List: The list clearly displays each vault position you hold, including:

  • LP Amount: The number of share tokens (nevLP Token) you hold and their USD value.

  • Your Earnings: The cumulative profit this position has generated for you.

  • APY: The current real-time APY of the vault.

• History: At the bottom of the page, the “Latest transactions” module records all your deposit and withdrawal history and provides links to the on-chain explorer, ensuring every operation is verifiable.

Step 4: Withdrawing Funds

When you need to withdraw your funds, the process is just as simple:

1. Return to the specific vault's details page.

2. Select the [Withdraw] tab.

   
3. Enter the amount of nevLP shares you wish to withdraw.

4. Choose a withdrawal method:

   • Zap Out (Single-asset withdrawal): You can choose to have your LP shares directly converted into any specified single asset (like USDC) and returned to your wallet. It's very convenient.

   • Manual (Dual-asset withdrawal): You can also choose to withdraw your LP shares as the two underlying tokens according to their current ratio.

5. Click the [Withdraw] button and confirm in your wallet.

   

Step 5: Advanced Play - Unlock Higher Yields!

Remember the nevLP Token you received after depositing? It is itself a yield-bearing asset that is constantly appreciating in value. Now, you can take it to Nemo's Yield Trading Market to unlock a higher level of compounded returns! Here, you can:

• Split Your Yield: Split your nevLP token into a Principal Token (PT) and a Yield Token (YT) to lock in profits early or leverage your returns.

• Provide Liquidity: Provide liquidity for PT/YT trading to earn additional trading fees and liquidity incentives.