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Overview

Arrowfarm is a permissionless, automated liquidity management and yield protocol built on Robinhood Chain.

It allows users to deposit assets into managed liquidity vaults and earn boosted yield without actively managing their positions.

In simple terms, Arrowfarm turns active liquidity providing into a more hands-off experience: users deposit into a vault, and the underlying strategy is managed automatically.

How Arrowfarm works

Concentrated liquidity normally requires active management. Positions need to be monitored, fees collected and reinvested, and liquidity ranges adjusted as market conditions change. Arrowfarm handles this automatically.

User Wallet

Arrowfarm Vault

Concentrated Liquidity Vault

Runs in parallel

Fee Compounding

Collect + reinvest earned fees

Range Management

Adjust liquidity range

Both branches rejoin here

User

Flow diagram: User Wallet sends a Deposit token A + token B into the Arrowfarm Vault, which deploys the assets into a Concentrated Liquidity Vault. From there the flow splits into two parallel branches: Fee Compounding, which collects and reinvests earned fees, and Range Management, which adjusts the liquidity range. Both branches rejoin at the User.

How it works:

  1. 1. Deposit into an Arrowfarm vault

    Connect your wallet and deposit tokens required by the vault.

  2. 2. Your assets are deployed into concentrated liquidity

    The vault places the assets into a concentrated liquidity position designed to earn trading fees from market activity.

  3. 3. Fees are compounded automatically

    As the position earns trading fees, Arrowfarm’s automation checks whether harvesting them is economically worthwhile. When it is, the fees are collected, converted into the required ratio, and reinvested back into the position.

  4. 4. The liquidity range is managed automatically

    Arrowfarm also monitors where the position sits relative to the market. If the range needs to move, the system evaluates whether repositioning is worth the cost before making the adjustment. It is designed to avoid unnecessary moves that could cost more than they earn.

  5. 5. You stay in control of your funds

    Arrowfarm is designed to be non-custodial. The automation can perform specific strategy actions, but it is not intended to hold a key that can independently move depositor funds or prevent a withdrawal.