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Range Optimization

Set price ranges for your Auto-Pools strategies. Define how your liquidity responds to price changes through custom price range configuration.

At a Glance​

  • Set custom minimum and maximum price ranges
  • Define price ranges around current price
  • Custom ratios according to assets and investment mindset
  • Works with all market modes (Bull, Bear, Dynamic, Static)
  • Integrates with rebalance triggers

Set a Price Range​

Auto-Pools doesn't limit you to a fixed price range or ratio while defining auto-rebalance intents.

You can define the minimum and maximum price range around the current price. You can make it in a custom ratio according to your assets and investment mindset.

Price Range Configuration​

When setting up your strategy, you configure:

Minimum Price: Lower bound of your liquidity zone.

Maximum Price: Upper bound of your liquidity zone.

Current Price Reference: Ranges are set relative to current market price.

Custom Ratios: Adjust range width based on your risk tolerance and market view.

Example Price Ranges​

For an ETH/USDm pool with current price of $3,000:

Wide Range (Bull Mode):

  • Minimum: $2,400 (-20%)
  • Maximum: $3,600 (+20%)

Medium Range (Bear Mode):

  • Minimum: $2,700 (-10%)
  • Maximum: $3,300 (+10%)

Narrow Range (Static Mode):

  • Minimum: $2,850 (-5%)
  • Maximum: $3,150 (+5%)

Range Selection Considerations​

Market Volatility: Higher volatility requires wider ranges to stay active.

Market Mode: Different modes work better with different range widths:

  • Bull Mode: Ranges that favor upward price movement
  • Bear Mode: Ranges that favor downward price movement
  • Dynamic Mode: Adaptive ranges that adjust to volatility
  • Static Mode: Fixed ranges for custom strategies

Rebalancing Type:

  • Trailing Rebalancing: Ranges can be wider as position trails price
  • Active Rebalancing: Ranges may need adjustment when price exits

Risk Management: For additional protection, especially with narrower ranges or high volatility, consider hedging your position with put options through Hedge. Options can limit downside exposure while your Auto-Pools position continues earning fees.

Integration with Rebalance Triggers​

Price ranges work together with rebalance triggers:

Price Range: Defines where your liquidity is active.

Rebalance Triggers: Define when rebalancing should occur (can be inside or outside the price range).

Setting triggers outside your price range provides a cushion during market swings, allowing you to wait for price to return before rebalancing.

FAQ​

Can I change my price range after deployment?
Yes, but it requires rebalancing the position. Some parameters can be adjusted without full rebalance.

What happens if price goes outside my range?
Depends on your rebalancing type. Trailing rebalancing will trail the price. Active rebalancing will swap assets to bring position back in range.

How do I choose the right range width?
Consider market volatility, your market mode selection, and risk tolerance. Wider ranges stay active longer but earn less fees per unit of capital.

Can I set asymmetric ranges?
Yes. You can set different distances above and below current price based on your market view.

Do ranges work differently in different modes?
Yes. Bull mode rebalances on the right side, Bear mode on the left side, Dynamic mode in both directions, Static mode doesn't rebalance automatically.

Can I hedge my position when using narrow ranges?
Yes. Narrow ranges offer higher capital efficiency but increased risk. You can hedge your position with put options through Hedge to protect against downside moves while maintaining the efficiency benefits of narrow ranges. Fees from Auto-Pools can help offset option premiums.

Next Steps​

Apply range optimization:

Customize your ranges.