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Arrakisfinance vaults in Arrakis Pro give their NFT holders control over the underlying assets

19-Oct-2026 · updated

Arrakisfinance vaults in Arrakis Pro are smart contracts that hold managed liquidity, with asset control attached to the vault's non-fungible token. The issuer chooses the strategy parameters, and Arrakis operates the market-making system. Owning the vault NFT carries withdrawal rights over the underlying assets.

What does an Arrakis Pro vault NFT control?

The Arrakis Pro vault NFT gives its holder control over the underlying assets, including withdrawal rights and the ability to pause or reconfigure the vault. Changes to core parameters follow a separate timelock. Arrakis operates the strategy within the issuer's chosen parameters.

A non-fungible token, or NFT, identifies a particular vault's ownership. Here, the token carries authority over assets managed through smart contracts. Routine market making doesn't require the issuer to hand the ownership token to the operator.

Transferring the vault NFT transfers control of the underlying funds.

Someone who gains control of that token gains control over the vault's assets.

The deployment handover places the vault NFT in the team's multisig or MPC wallet. The wallet's signing configuration determines how the team authorizes actions through that ownership token.

The Pro vault model and its PALM history

Arrakis Pro's vault model manages protocol-owned liquidity: assets that a token project supplies from its own treasury. The vault operates on a decentralized exchange, or DEX, under the team's selected strategy. Arrakis announced PALM's rebrand to Arrakis Pro on November 7, 2024.

The contract components behind a vault

Arrakis Modular combines a core vault with a DEX-specific module that holds liquidity, plus an optional Uniswap v4 hook where the deployment uses one.

The core vault and liquidity module

The core vault and its DEX-specific module form a modular contract arrangement. The module holds the liquidity associated with its DEX. Separating those components allows a vault to change DEXs or add capabilities without redeployment. The ownership NFT concerns control over the vault, while the module concerns where its liquidity operates.

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Optional pool features

A Uniswap v4 hook adds a configured pool capability to the strategy. Price Convergence and Dynamic Fees belong to that optional layer. Their presence follows the deployment's configuration, so describing an Arrakis Pro vault doesn't establish that either hook is active. The strategy remains responsible for its liquidity and inventory objective.

Does the two-day timelock delay withdrawals?

Arrakis Pro's two-day timelock applies to core-parameter changes, while the vault NFT holder retains the right to withdraw assets at any time.

Ordinary strategy activity

Arrakis adjusts the strategy during normal management as markets change. Rebalancing within the existing configuration belongs to that ongoing operation. It doesn't make every price-range adjustment a new core-parameter change or create a fresh two-day withdrawal restriction.

Changes to core parameters

Changes to an Arrakis Pro vault's core parameters are subject to a two-day timelock. That interval gives the owner time to assess the proposed change or exit. It doesn't set the strategy's rebalance frequency or describe how long a withdrawal transaction takes.

Continuous management between owner decisions

The offchain market-making system monitors price, volatility, and inventory, then calculates adjustments and sends instructions to the vault's onchain contracts. The team chooses the strategy and its parameters. Arrakis handles the continuing calculations and execution needed to operate within that arrangement. Range width changes the way a vault distributes its capital around the market price. Concentrating liquidity near spot can provide more depth there with the same inventory. Wider positioning spreads that inventory across a larger price interval. Active management responds to those tradeoffs by changing the placement and distribution of the vault's liquidity.

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What happens when a position leaves its range?

A Uniswap v3 or v4 concentrated-liquidity position stops earning swap fees when the market price moves outside that position's selected price range. Trading also changes the position's composition. As the price moves through its range in one direction, the position can end up holding only one of its assets. An unchanged Uniswap v3 or v4 position becomes active again when the market price returns inside its range. Active management can also change liquidity placement. Fee eligibility therefore follows the liquidity's range and the market price, rather than ownership of the NFT.

Strategy and hook choices for vault configuration

Arrakis Pro's strategy choices set an inventory or liquidity objective, while its optional Uniswap v4 hooks add pool behavior when configured at deployment. A vault can combine a chosen strategy with an applicable hook capability.

Where converted quote assets remain

Bootstrap and Treasury Diversification both convert project-token inventory through market demand, but the strategies use the accumulated quote assets differently inside the vault arrangement. Bootstrap keeps captured quote assets deployed in liquidity as inventory moves toward the configured target ratio. Reaching that target triggers the move to Flagship.

Treasury Diversification removes captured quote assets from the pool and retains them in the vault. Its mandate is to convert the targeted project-token holdings, rather than graduate to ongoing balanced-liquidity management. That difference affects what a growing quote balance represents: inventory supporting continued market making in one strategy, and assets set aside from pool liquidity in the other.

Onchain visibility and continuing market exposure

A Flagship vault exposes its positions, earned fees, and inventory onchain, allowing its activity to be examined beyond the ownership NFT. Those records describe liquidity placement and asset composition. They don't turn self-custody into protection against market losses: Flagship adjusts exposure during volatility, and its concentrated positions can still suffer impermanent loss, meaning they underperform holding the underlying tokens through large directional moves.

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Vault setup before delegated management

Vault setup establishes the market and management settings before Arrakis deploys the configured contracts and transfers the ownership NFT to the issuer's team.

The pool and position settings

Configuration identifies the pool, fee tier, price range, strategy schedule, and any applicable hook settings. These choices connect the intended inventory objective to a particular liquidity deployment. A strategy name alone doesn't specify every setting that governs the resulting vault.

The owner's control address

The team's wallet holds the NFT that carries the vault rights. Its identity therefore matters alongside the pool configuration. Correct liquidity settings don't compensate for handing the ownership token to the wrong holder, because the token itself carries authority over the assets.

The vault's objective as inventory needs change

The vault NFT holder authorizes changes to the active strategy as the team's inventory needs evolve, while core-parameter updates remain subject to their timelock. Reconfiguration changes the management mandate under the same ownership model.

The next choice concerns how the team intends to use its existing inventory. Ongoing market making calls for liquidity positioned around trading activity. Treasury conversion calls for accumulating quote assets from the targeted project-token holdings.