Bonzo Vaults: Single Asset DEX Defensive Range Updates

Overview

In partnership with Amplifi, based on continued observation of both market conditions and Single Asset DEX vault mechanics, the active range(s) for certain Single Asset DEX vaults have been modified to better align with market conditions. At a very high level, the active ranges for certain vaults have been widened and vault defensiveness modified to shift to a "defensive" position (to protect primary asset deposits) sooner. The intent of this change is to reduce impermanent loss-driven drawdowns and loss-versus-rebalance during fast moves of the market, with the compromise of lower headline fee APYs.

What changed

1) Wider active ranges (less concentrated)

Most vaults are now set to ~40% concentration (wider ranges than before). This offers vault strategies more room to operate around current spot prices, without forcing rapid inventory conversion during short, sharp moves.

Vaults updated:

• ETH/USDC and USDC/ETH
• HBAR/BONZO and BONZO/HBAR
• HBAR/SAUCE and SAUCE/HBAR
• HBAR/DOVU and DOVU/HBAR
• HBAR/USDC and USDC/HBAR

2) High-volatility defensive trigger: 3% in 20 minutes

The vaults cited above now use a 3% move within a rolling 20-minute window as the high-volatility trigger. If price moves ≥3% within 20 minutes, the vault shifts into Defensive Mode, which is Full Range liquidity.

Why this matters: during fast, directional moves, tight ranges can force rapid inventory conversion and amplify IL. Moving to "Full Range" during these events is designed to reduce forced selling and stabilize positioning until conditions normalize.

3) Inventory guardrail tightened: 77% → 81%

Also updated is the inventory protection threshold, so the specified vaults becomes defensive sooner, when inventory becomes too one-sided.

• Previous threshold: 77%
• New threshold: 81%

Interpretation: When the vault’s inventory approaches ~81% skew toward one asset, it will adopt a more defensive posture earlier instead of continuing to sell the deposit asset into the paired asset during momentum.

Why this change was made

In volatile markets, tight ranges can maximize fee capture — but they can also increase the likelihood of:

• Impermanent loss and loss-versus-rebalance exceeding fees
• Forced conversion during fast directional moves
• More pronounced drawdowns during volatility spikes

These updates shift the strategy toward risk management and inventory control, aiming for more consistent outcomes during the timeframes most users evaluate performance (weeks vs quarters).

What users should expect going forward

• Lower fee APRs during calm periods versus the prior tighter settings
• Faster de-risking during sharp moves (≥3% within 20 minutes), with the vault moving to Full Range sooner
• More conservative behavior during volatility, with earlier transitions to Defensive Mode
• A strategy profile that prioritizes IL protection and stability over maximum fee extraction

In Summary

In observation of market conditions, Single Asset DEX vaults behave less aggressive and more defensive by widening ranges and triggering "Full Range" sooner. This change was made with the intention of reducing IL-driven losses in the current volatility regime, even if it results in lower headline fee APRs.