🔹 Introduction

This guide walks through my actively managed DeFi liquidity strategy (DADS DEFI SPACE USDC FUND using Krystal Vaults with a focus on fee harvesting, impermanent loss control, and manual reinvestment for yield optimization using CHATgpt.

DADS DEFI SPACE KRYSTAL VAULTS- TRACKING - YIELD FARMING💎 -#notfinancialadvice #defieducation  USDC VAULT HIGH YIELD - UNDERSTAND HOW VAULT MECHANICS WORK - AUTOMATED DEFI https://defi.krystal.app/vaults/8453/0x164c4ab26fb9312480b82f37d014da679cfbbb63

🧠 Strategy Overview: Objectives and Constraints

Goals:

• Maximize APR through active LP management

• Harvest USDC fees for tactical redeployment

• Minimize impermanent loss (IL) without sacrificing yield

• Use TradingView & pool data for real-time decision-making

User Inputs:

• Interacts with vaults 2–3x per week

• Moderate to high IL tolerance (if compensated by yield)

• Prefers manual compounding (harvesting) over auto-compounding

• Uses TradingView and DEXTools for technical triggers

• No cap on USDC exposure per asset

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🔁 Vault Strategy Breakdown

✅ ETH/USDC Vault (PancakeSwap V3)

• Range: $2,475 – $2,860

• Based on: Support/resistance from TradingView daily chart

• Auto Settings:

  • Auto-Compound: ❌ Off

  • Auto-Rebalance: ✅ On (±6%)

  • Auto-Exit: ✅ Trigger if price breaks below $2,380 or above $2,900

• Harvest Frequency: Every 2–3 days

• Reinvestment Trigger: Re-enter below $2,520 or break above $2,900 with volume

✅ VIRTUAL/USDC Vault (Uniswap V3)

• Range: $1.40 – $1.75

• Based on: High volatility support/resistance zones from TradingView

• Auto Settings:

  • Auto-Compound: ❌ Off

  • Auto-Rebalance: ✅ On (±6%)

  • Auto-Exit: ✅ Trigger if price breaks below $1.38 or PnL < -5%

• Harvest Frequency: Every 2 days

• Reinvestment Trigger: Bounce confirmation from $1.38 or breakout > $1.75

✅ USDC/CBBTC Vault (PancakeSwap V3)

• Range: $0.89 – $1.01

• Auto Settings:

  • Auto-Compound: ❌ Off

  • Auto-Rebalance: ❌ Manual

  • Auto-Exit: ✅ Below $0.88 or above $1.02

• Harvest Frequency: Weekly

• Reinvestment Trigger: Deploy during BTC weakness or high-potential pair opportunity

💼 Harvesting vs Compounding

Instead of auto-compounding, USDC fees are:

• Claimed manually 2–3x/week

• Held in a dedicated “harvest wallet”

• Redeployed based on:

  • Price action (support retests or breakouts)

  • New high-APR opportunities

  • Technical levels from TradingView alerts

📊 Sample Automation Logic (JSON-style)

🔔 TradingView Alert Templates

• ETH Alert: Trigger reinvestment below $2,520

• VIRTUAL Alert: Alert if $1.38 support breaks

• Optional: Link to auto-withdraw functions using webhook bots or tools like Gelato

🗓️ Weekly Liquidity Management Routine

🧩 Optional: Build a Redeployment Framework

If needed, use a rule-based logic to guide how harvested USDC is allocated to:

• Re-enter existing vaults

• Explore new opportunities with higher APR

• Sit in yield-bearing stable protocols while waiting

🔚 Conclusion

This strategy emphasizes active liquidity provision with structured harvesting, offering better capital control and adaptability in volatile markets. Tools like Krystal, TradingView, and DEXTools form a cohesive system when used with discipline.