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CLM

Automated liquidity management directly connected to DEX. CLM deploys algorithmic strategies that rebalance Liquidity Zones, maximize capital efficiency, and adapt to changing market conditions.

At a Glance​

  • Automated Liquidity Zone management with zero manual intervention
  • Multiple Strategy Modes for different risk profiles and goals
  • Continuous rebalancing enabled by MegaETH's low gas costs
  • Real-time performance tracking and analytics
  • Capital efficiency up to 95% vs 60-70% for manual positions
  • Composable with DEX and Hedge

How It Works​

Strategy algorithms run continuously, analyzing market conditions and adjusting your positions automatically. MegaETH's ultra-low gas costs (~ $0.01 per rebalance) make frequent adjustments economically viable.

Why Use Strategies?​

Manual Management Challenges​

Managing concentrated liquidity manually is complex:

  • Requires constant price monitoring
  • Need to calculate optimal zones
  • Must rebalance when price moves
  • Time-intensive and prone to human error
  • Emotional decisions during volatility

CLM Benefits​

Automation: Strategies work 24/7 without human input.

Optimization: Algorithms calculate mathematically optimal zones.

Speed: Rebalance in milliseconds when conditions change.

Consistency: No emotional decisions. Pure math.

Scalability: Manage multiple positions simultaneously.

Strategy Modes​

Different strategies for different goals:

Conservative Mode​

Goal: Maximize active time, minimize rebalancing.

Characteristics:

  • Wide Liquidity Zones (±20-30%)
  • Infrequent rebalancing
  • Lower capital efficiency
  • Stable, predictable earnings

Best For: Passive investors, volatile markets, risk-averse LPs.

Details →

Balanced Mode​

Goal: Optimize capital efficiency with moderate management.

Characteristics:

  • Medium Liquidity Zones (±10-15%)
  • Regular rebalancing based on thresholds
  • Good capital efficiency
  • Balanced risk-return

Best For: Most LPs, standard market conditions.

Details →

Aggressive Mode​

Goal: Maximum capital efficiency and fee earnings.

Characteristics:

  • Narrow Liquidity Zones (±3-7%)
  • Frequent rebalancing
  • Highest capital efficiency
  • Higher gas costs

Best For: Active traders, stable markets, high volume pools.

Details →

Dynamic Mode​

Goal: Adapt zone width to market volatility.

Characteristics:

  • Variable zone width
  • Expands during high volatility
  • Contracts during stability
  • Intelligent rebalancing

Best For: Changing market conditions, experienced LPs.

Details →

Key Features​

Continuous Rebalancing​

Traditional chains make frequent rebalancing unprofitable:

Ethereum Mainnet:
Rebalance cost: $100
Need $50+ fee improvement to justify
Rebalance frequency: Weekly or less

MegaETH:
Rebalance cost: $0.01
Need $0.50+ fee improvement to justify
Rebalance frequency: Hourly or more

MegaETH enables true continuous optimization.

Real-Time Adjustments​

Strategies adjust positions in real-time:

  • Price moves 5%: Rebalance within seconds
  • Volatility spikes: Widen zones immediately
  • Volume shifts: Adjust to capture flow

No waiting for off-chain keepers or block confirmations.

Multi-Position Management​

Deploy strategies across multiple positions:

Position 1: ETH/USDC (Aggressive Mode)
Position 2: WBTC/ETH (Balanced Mode)
Position 3: USDC/USDT (Conservative Mode)

Each position runs its own strategy independently.

Performance Analytics​

Track strategy performance in detail:

  • APR over time
  • Rebalancing frequency and costs
  • Zone width adjustments
  • IL mitigation effectiveness

Compare manual vs automated performance.

Performance tracking →

Deploying a Strategy​

Select Strategy Mode​

  1. Navigate to CLM
  2. Browse available modes
  3. Review characteristics of each
  4. Select mode matching your goals

Configure Parameters​

Customize strategy behavior:

Rebalance Threshold: How far price moves before rebalancing.

Minimum Fee Delta: Minimum expected fee improvement to justify rebalance.

Max Zone Width: Maximum Liquidity Zone width.

Min Zone Width: Minimum Liquidity Zone width.

Volatility Lookback: Period for calculating volatility metrics.

Most users use default parameters. Advanced users can fine-tune.

Choose Pool and Amount​

Select:

  • Token pair
  • Fee tier
  • Initial capital amount

Strategy creates initial position with optimal zone.

Confirm Deployment​

Review:

  • Strategy mode
  • Pool details
  • Expected APR
  • Gas estimates

Approve and deploy. Strategy activates immediately.

Strategy Performance​

Expected Returns​

Strategy performance varies by mode and market:

Conservative Mode:

  • Active time: 90-95%
  • Capital efficiency: 3-5x traditional AMM
  • Typical APR: 15-30%

Balanced Mode:

  • Active time: 80-90%
  • Capital efficiency: 5-8x traditional AMM
  • Typical APR: 25-45%

Aggressive Mode:

  • Active time: 60-80%
  • Capital efficiency: 10-15x traditional AMM
  • Typical APR: 40-80% (when active)

Returns depend on pool volume, volatility, and fee tier.

Gas Efficiency​

Strategies optimize for net return after gas:

Potential Fee Gain: $2
Rebalance Cost: $0.01
Net Benefit: $1.99

Decision: REBALANCE

vs

Potential Fee Gain: $0.30
Rebalance Cost: $0.01
Net Benefit: $0.29
Minimum threshold: $0.50

Decision: WAIT

Algorithms never rebalance unless net benefit exceeds threshold.

Risk Management​

Strategies include built-in risk controls:

Stop-Loss​

Automatically close position if losses exceed threshold:

Position Value: $10,000
Stop-Loss: 15%
If value drops to $8,500: Position closes automatically

Protects capital during extreme movements.

IL Mitigation​

Strategies adjust to minimize impermanent loss:

  • Widen zones during high volatility (reduces IL)
  • Tighten zones during stability (increases fees)
  • Asymmetric zones based on trend direction

IL mitigation details →

Max Rebalance Frequency​

Prevents over-trading:

Max rebalances: 24 per day (one per hour)
Cooldown: 30 minutes between rebalances

Ensures algorithms don't react to noise.

Composability​

Strategies integrate with other MegaFi layers:

With DEX​

Strategies build on top of MegaPools:

  • Use same liquidity positions
  • Manage Liquidity Zones automatically
  • Collect and compound fees

With Hedge​

Combine strategies with hedging:

CLM: Earn fees from LP position
Hedge: Buy put option for downside protection

Fees help offset option premiums. Protection limits downside.

Hedge integration →

Strategy on MegaETH​

MegaETH's unique properties enable sophisticated strategies:

Sub-10ms Execution​

Strategies rebalance faster than market can arbitrage:

1. Algorithm detects need to rebalance: 0ms
2. Calculate new zone: 1ms
3. Remove old position: 5ms
4. Add new position: 8ms
5. Total: 14ms

Position updates before most traders perceive price movement.

Ultra-Low Costs​

Gas costs enable profitability impossible elsewhere:

Profitable rebalance on Ethereum:
Need $50+ fee improvement (gas cost)
Opportunity frequency: 1-2x per week

Profitable rebalance on MegaETH:
Need $0.50+ fee improvement (gas cost)
Opportunity frequency: 10-20x per day

100x more rebalancing opportunities become economically viable.

Real-Time Data​

Continuous state updates provide perfect market data:

  • No stale prices from block delays
  • Instant volatility calculations
  • Real-time volume tracking

Algorithms make better decisions with better data.

Advanced Features​

Backtesting​

Test strategies against historical data:

  1. Select strategy mode
  2. Choose historical period
  3. Set pool and parameters
  4. Run simulation
  5. Review performance vs manual management

See how strategy would have performed before committing capital.

Parameter Optimization​

Automatically find optimal parameters:

  • Algorithm tests different configurations
  • Measures performance for each
  • Recommends best settings for your pool

Available for experienced users.

Custom Strategies​

Build your own strategies (coming soon):

  • Define custom rebalancing logic
  • Set unique risk parameters
  • Backtest before deploying
  • Share with community

FAQ​

Are strategies audited?
Not yet. Security audits are planned before mainnet launch. Current deployments are for testing only.

Can I withdraw from a strategy anytime?
Yes. No lock periods. Exit whenever you want.

Do strategies guarantee profits?
No. Strategies optimize management but can't eliminate market risk or IL.

What happens if MegaETH goes down?
Strategies pause during outages. Resume automatically when network returns.

Can I modify strategy parameters after deployment?
Some parameters are adjustable. Others require closing and redeploying.

Do strategies work during high volatility?
Yes. Dynamic and Conservative modes specifically designed for volatile markets.

Next Steps​

Explore CLM components:

Set it and forget it.