1. Why We Publish Vaults Publicly
The core purpose of Digital WealthCraft is education. We believe people learn best when they can see how structure behaves in the real world — not just in theory.
Each vault we publish is a live case study. It shows how an actual liquidity position, on an actual decentralized exchange, responds to price movement, volatility, swaps, and time. We present these vaults so that members can observe:
- How different range widths behave in production.
- How “time in range” and “fee generation” interact.
- How active vs calm rebalancing philosophies feel in practice.
- How discipline and patience matter more than hype.
These vaults are not sold as signals, products, or promises. They are part of an evolving curriculum.
2. The Multi-Band Range Model
Our vaults generally use a multi-band structure, which means we do not just set one single liquidity range and walk away. Instead, capital is allocated across several nested bands around current market pricing.
Conceptually, those bands serve different roles:
Core Bands
These sit near the current price. Their job is to capture swap fees efficiently when trading activity is heaviest. They represent the “main work area” of the vault.
Support / Extension Bands
These sit a little farther out. Their job is to keep the position alive when the market drifts or surges, so liquidity doesn’t just go dark the moment price moves.
By combining multiple bands of different widths, we can create a profile that’s not “all-in on tight” and not “spread so wide it barely earns.” This layered approach is what makes DWC-001 and DWC-002 useful to compare.
We do not publicly disclose exact band boundaries, percentages, or allocation math. That level of detail is part of our internal method and is not required for the educational purpose of understanding how these model types behave.
3. Why We Run Both a Moderate Model and a Wide Model
In concentrated liquidity, where you place your liquidity matters just as much as how much liquidity you provide. The two flagship vaults in our Range Series reflect two different priorities:
DWC-001 · Moderate Range Model
This vault sits in moderately tight bands around price. It aims for stronger fee density when in range. It’s actively maintained and will rebalance when appropriate. Educationally, it shows “precision with discipline” — how closer placement to price can perform.
DWC-002 · Wide Range Model
This vault spreads liquidity across wider bands. The tradeoff is lower fee intensity per dollar at any single instant, but the benefit is more time in-range during volatility, and fewer adjustments. Educationally, it shows “coverage and endurance.”
Viewed together, they illustrate range diversification: using different width profiles side by side so you’re not relying on a single style of behavior. This pairing is intentional and central to how we teach.
4. Rebalancing: Why We Don’t Chase Every Tick
Rebalancing is the act of moving or re-centering liquidity ranges when price drifts. In theory you could rebalance constantly — always hugging the current price. In practice, that can be expensive, stressful, and can lock in unnecessary impermanent loss.
Our approach is deliberately calmer. We use time-based and condition-based thresholds rather than “every tiny move.” Sometimes, if a band goes out of range, we allow a grace period. Why?
- Markets often revert back into range without intervention.
- Every rebalance has cost (gas / fees / slippage).
- Every rebalance can crystalize impermanent loss that might have self-corrected.
The vaults are meant to be educational, not hyper-reactive trading bots. We want observers to see what patient liquidity engineering looks like — not panic behavior.
We do not publish the exact timing parameters, triggers, or internal signals we use to decide when to rebalance. Those details are part of our proprietary process.
5. What We Watch Internally (At a High Level)
To evaluate how a given model is behaving, we pay attention to things like:
- Time in range: How often the vault’s liquidity is actually active and earning.
- Fee capture: Fees earned relative to capital deployed, not just total dollar fees.
- Rebalance frequency: How often we have to touch it. Too frequent = high friction. Too rare = dead liquidity.
- Behavior in volatility: Did the position totally drop out of usefulness, or did it stay relevant?
Over time, these observations help us refine future vaults, adjust balance between bands, and design new model types (for example, correlation-driven pairs in the future).
6. What This Page Is Not
To be very clear about boundaries:
- This is not a signal to deposit into any specific strategy.
- This is not financial, investment, tax, or legal advice.
- This is not a claim of guaranteed yield or future performance.
- This is not a disclosure of proprietary allocation math, triggers, or band percentages.
The purpose of Methodology & Notes is to explain the thinking — the “why” behind the structure — so that learners and community members can build understanding over time.