I was looking through StandX when i found a new section on the Vaults page. Community Vaults.

These are all ‘strategy vaults’ the only type of community vault currently live. There are already 7 of them sitting there, created by users and open for deposits. So naturally, I went deeper. turns out Community Vaults are part of SIP-5B, the capital layer being built for Universal Markets.

Strategy Vaults

All the current vaults you can see like ‘Chud Vault and ‘100x Vault’ are called Strategy Vaults, the first type to go live. They let users pool their funds behind a Vault Manager who trades on StandX Perps.

When you deposit, you receive a share of the vault based on how much you contributed. As the manager trades and the vault’s value changes, everyone shares the gains and losses proportionally.

Designed for Anyone to Create

I can already explore the live vaults and see how the creation flow works, but vault creation isn’t open to normal users yet. For now, I’m waiting until access becomes available before I can create one myself.

The Vault Manager must always maintain at least 5% of the vault. If new deposits would dilute the manager below that level, the vault stops accepting deposits until they add more capital. the manager also cannot withdraw if doing so would take their share below 5%.

So the person making the trades cannot simply play with everyone else’s money and sprint for the exit first. I like this a lot. But on to what i like the most.

Build your Own Corner of StandX

a Strategy Vault is not the same as creating your own market (this comes later with more SIP-5 rollout). But anyone can create a vault around their own strategy, put their capital behind it and build a community of people who believe in what they are doing.

Maybe someone becomes known for trading BTC macro moves. Another nails trading a specific sector. A transparent trader-personality builds a loyal following…

I love the idea of people building their own little corners of StandX from the ground up. So yeah pretty good to see StandX introducing the capital layer required for Universal Markets under SIP-5.

And it’s only getting started🧍‍♂️