How Tumbuh Smart Rebalance Generates Yield
Tumbuh Smart Rebalance optimizes liquidity provisioning through two complementary models:1. Passive Market Making
1. Passive Market Making
Vaults deploy capital into AMMs such as Morpho, Aerodrome, and other concentrated liquidity markets. Strategies include:
- Intelligent tick placement to maximize fee capture
- Minimization of impermanent loss (IL)
- Continuous optimization based on market volatility
- Real-time rebalancing
- Dynamic range management
- Predictive analytics to adapt to changing volatility
2. Protocol-Managed Market Making
2. Protocol-Managed Market Making
In protocol-managed strategies, vaults act on behalf of token issuers, stablecoin projects, or exchanges to maintain price efficiency. This includes:
- Stablecoin anchor pairs (e.g., BTC/USDT, USDC/DAI)
- IL-protected volatile pairs
- Custom cooldown logic for strategic exits and slippage reduction
Yield Composition
Vault APY is generated from three primary components:- Fee Earnings From LP positions in concentrated liquidity markets.
- Spread Capture Earned through active market-making when prices move within deployed ranges.
- Utilization Premiums Additional yield derived from demand on specific vaults.
Data Tracking & Reward Accounting
To ensure transparent and accurate yield calculations, Tumbuh tracks:- All fee collection events within the DEX
- Swap activity occurring inside the vault’s liquidity ranges
- Conversion of collected fees into IDRX using timestamp-aligned price feeds
Snapshot Data Structure
Data is recorded at fixed intervals (every 10 minutes) and stored at the user level.Each snapshot contains the following fields:
| Field | Description |
|---|---|
| User’s Fees Token A Amount | The total trading fees the user has earned in Token A within the liquidity pair. |
| User’s Fees Token B Amount | The total trading fees the user has earned in Token B, the second asset in the liquidity pair. |
| User’s Rewards Token C Amount | Additional incentive rewards distributed in Token C (e.g., emissions from partner protocols). |
| User’s Rewards Token D Amount | Secondary incentive rewards distributed in Token D, if applicable. |
| User’s New Rewards (USD) | The newly accumulated rewards since the previous snapshot, converted to USD using timestamp-aligned price feeds. |
| User’s Cumulative Rewards (USD) | The user’s total lifetime earnings up to this snapshot, also expressed in USD. |
- Transparent and verifiable reward calculations
- Accurate accounting across multiple token types
- Real-time insight into both token-denominated and USD/IDRX-equivalent earnings
- A consistent basis for reporting, leaderboard ranking, and user dashboard updates
Fees and Risks
| Performance Fee | Withdrawal Fee | Risks |
|---|---|---|
| Applied only when profits are realized. | None, unless specified by protocol. | Smart contract exploits, partner protocol failure, stablecoin depeg risk. |
- Fee Structure
- Performance Fee
- Management Fee
- User Protections & Exit Flexibility
Tumbuh use a transparent, performance-based fee model that aligns the interests of users, the protocol, and strategy providers. All fees are enforced on-chain and are clearly visible in the vault’s dashboard.