What is single-sided liquidity and how do single-sided vaults work?
How a one-token deposit becomes a managed concentrated liquidity position.
Single-sided liquidity means depositing only one token into a liquidity strategy instead of the 50/50 pair a standard AMM position requires. A single-sided vault, such as those Amplifi runs, accepts that one deposit token, places it as concentrated liquidity on the side of the market where it is useful (asks if it is the base token, bids if it is the quote), and manages the resulting inventory as trades convert part of it into the other asset. The depositor gets vault shares, usually ERC-4626, redeemable at any time for their proportional claim on the vault's holdings.
Why the standard 50/50 pairing is a barrier
A vanilla Uniswap v2 position needs equal value of both tokens. A depositor who only holds the base token has to sell half of it into the quote asset before providing liquidity, paying spread and price impact, and taking directional exposure they did not want. Single-sided vaults remove that step: deposit what you have, the vault handles the pairing.
Where the deposit gets placed
The vault posts concentrated liquidity in a range on one side of spot. A treasury holding a native token gets posted as ask-side liquidity above spot, so organic buy flow converts it into the quote asset. A stablecoin depositor into a peg-tracking pair gets posted as bid-side liquidity below the peg. In both cases, the vault only fills passive trades: no market sells, no self-inflicted price impact.
Inventory management as trades come in
As the market takes the vault's offer, inventory shifts from the deposit token into the other asset. The vault rebalances ranges as price moves so depth stays where trades happen, and reports performance in deposit-token terms net of impermanent loss. Depositors see accrued fees and current inventory on-chain in real time.
Custody and withdrawals
Funds never leave the depositor's Safe or the vault contract. Amplifi holds strategy authority through a multisig; depositors keep withdrawal rights the entire time and redeem their ERC-4626 shares for the current mix of both assets whenever they choose.
To scope a single-sided vault for a treasury or token, contact contact@amplifiliquidity.com.