Classic Rebalance

Basic Overview

The Classic Rebalance Strategy is a liquidity management approach used in decentralized finance (DeFi) protocols. It aims to maintain a balanced liquidity position by periodically adjusting the position location based on market movements. This strategy's fixed width helps consistently manage risk and maintain stability in a trading portfolio over time.

Ideal Applications

• Markets with sufficient counter-liquidity and moderate volatility

• Situations where predictable width and periodic re-centering help manage divergence loss

Overview

This strategy maintains a fixed-width position centered near the current price and recenters when configured triggers are met. Width can be defined as a percentage, multiplier, or static ticks, allowing adaptation to asset characteristics while keeping investor-facing simplicity.

Key Features

• Flexible width configuration (percent, multiplier, or static ticks)

• Optional rebalancing triggers and liquidity curve shaping

• Suitable for blue-chip pairs and deeper pools

Use Cases

• Blue-chip pairs where steady fee capture is prioritized over ultra-tight ranges

• Pools with established volume where periodic recenters maintain activity

Technical Explanation

Width is defined by percentage, multiplier, or static ticks. Positions are recentred when triggers indicate meaningful drift or inactivity. Optional curve shaping can favor near-price liquidity.