# Dual Position Strategies - Base/Limit

### Dynamic Range (Wide / Narrow)

Dynamic ranges are the most common strategy for Gamma vaults. 

<figure><img src="/files/T9ZvwOv8WURBbqAausly" alt=""><figcaption></figcaption></figure>

1. **Description** - Liquidity ranges are automatically rebalanced when certain rebalance triggers are hit. Liquidity ranges can be set for a pair and rebalances are automatically triggered by the price moving a certain percentage one way or another.
2. **Benefits** - In a low volatility environment, narrower ranges generally earn more in fees and perform better due to earning at a higher fee multiplier, without suffering much impermanent loss.  Accrued fees will be compounded back into the position on a regular basis on behalf of LPs compounding yield.  Auto-rebalancing additionally allows for a passive LP experience.
3. **Risks** - In a high volatility environment, narrower ranges may incur more impermanent loss and divergence costs. During periods of prolonged volatility, the higher fees in a narrower range may not outweigh the savings in impermanent loss from a wider range.

   Upon each rebalance, price ranges are set at a fixed range of current price, and asset allocations could vary from 50/50.

<figure><img src="/files/eI4USdq1Kd2h47ceT0hX" alt=""><figcaption></figcaption></figure>

### Stable

<figure><img src="/files/hqdJZZtSrkpEVRFhmUXP" alt=""><figcaption><p>From ChartEx</p></figcaption></figure>

1. **Description** - Liquidity ranges are aimed to straddle one asset at various ranges depending on backtesting results. For more volatile stablecoin pairs, wider ranges will be used. For blue-chip stables, narrower ranges will be used.&#x20;
2. **Benefits** - Accrued fees will be compounded back into the position regularly on behalf of LPs compounding yield.
3. **Risks** - During times of high volatility in the markets, asset allocation could vary significantly from 50/50.

### Pegged Price

<figure><img src="/files/QTiPpGnDpEKujDdUiiT4" alt=""><figcaption></figcaption></figure>

Pegged price strategies are used with pegged assets like staked tokens.

1. **Description** - Pegged price strategies are used with pegged assets like LSTs.  Liquidity is provided directly around the net asset value of a provided asset
2. **Benefits** - As the net asset value hits certain price targets, the liquidity position will be automatically rebalanced.
3. **Risks** - During high market volatility, the actual market price can go out of range, and the position will not earn fees.


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