The haeVault vault system of the Otter Protocol has received a major upgrade, introducing a brand new liquidity management module. The core innovation lies in an automated intelligent rebalancing system that fundamentally changes the original operational logic.

In version 1, each vault could only correspond to one liquidity pool. With version 2, this restriction has been broken — the same vault now supports managing multiple pools and positions simultaneously. Based on market conditions, the system can automatically allocate funds into pools with different fee tiers and configuration schemes. This means users no longer need to manually judge and adjust.

A particularly noteworthy feature is the design of the "Breathing Position" mechanism. When prices fluctuate sharply, the system does not immediately execute rebalancing operations but first expands the LP's price range as a buffer zone. Once market sentiment gradually stabilizes, liquidity will be gradually narrowed back, achieving what is called "soft migration." This approach effectively reduces impermanent loss caused by extreme price volatility.

From the initial planning stage, v2 has built-in support for the DLMM (Dynamic Liquidity Market Maker) protocol. The first phase will integrate $CETUS 's DLMM pool, with the system automatically handling bin position selection and configuration. There are also plans to connect with other protocols like Ferra in the future.

In simple terms, this upgrade systematizes all the tedious operations of monitoring, comparing repeatedly, and manually rebalancing that used to be required. For those with liquidity mining needs but limited time and effort, this solution can significantly reduce management costs.