Basic Strategies
1. Spot – Concentrated
Profile: High conviction, high risk/reward
Deploy your liquidity in just 1–3 bins centered around the current price. Ideal for stablecoin pairs or tight pegs where you expect minimal movement.
Maximum capital efficiency; highest fee yield when trades hit the bin.
Very narrow exposure. Requires frequent rebalancing or price must remain stable to avoid going out-of-range.
2. Spot – Wide
Profile: Balanced, moderate maintenance
Spread your liquidity evenly over 20–50 bins around the price. This offers a blend of active earnings and tolerance to market swings. Great for users who rebalance just a few times a week.
Steady fee income with fewer rebalances.
Lower fee density than concentrated strategies.
3. Spot – Ultra‑Wide
Profile: Hands-off, long-term exposure
An extreme version of "Wide": hundreds of bins, deployed in batches to mimic classic AMM style (like Uniswap V2). Perfect for users who want to "set and forget."
Minimal rebalancing; broad coverage.
Diluted fee earnings; most capital is spread thinly.
4. Curve
Profile: Smart balance between yield and flexibility
Place a curved distribution: heavy liquidity concentration at the center with tapering support in adjacent bins. Often used around stable pairs that may deviate slightly, or for capturing fee flows while staying near-market.
Capital efficient with buffer zones; good yield without frequent rebalancing.
Complexity in initial setup; may need occasional rebalance.
5. Bid‑Ask
Profile: Active market-making, volatility-focused
Deploy liquidity in two clusters: one set of bins below current price (bid side), another above (ask side). Your position captures both sides of price movement.
Excellent for earning during sideways volatility.
Demands close monitoring and active adjustments; larger gas costs.
Risks Across All Strategies
Impermanent Loss (IL): Narrow bins increase IL if price doesn’t return.
Inactive Bins: All styles risk going out-of-range if price moves significantly.
Transaction Costs: More sophisticated shapes require more gas and upkeep.
Volatility Risk: Sudden price swings can temporarily eliminate fee income until rebalanced.
Choosing the Right Strategy
Concentrated
High
🔼 Highest
🔼 Highest
Wide
Medium
🔼 Medium
🔼 Medium
Ultra-Wide
Low
🔽 Modest
🔽 Low
Curve
Medium–High
🔼 Medium–High
🔼 Medium
Bid‑Ask
Very High
🔼 High (volatile)
🔼 High
What Next?
Try "Wide" for a simple and forgiving start.
Upgrade to "Curve" or "Bid‑Ask" as you grow confident and comfortable managing more active strategies.
Track performance using the dashboard; assess fee yields, costs, and rebalance needs.
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