> For the complete documentation index, see [llms.txt](https://docs.gamma.xyz/gamma/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gamma.xyz/gamma/lp-vaults/strategies/dual-position-strategies-base-limit.md).

# Dual Position Strategies - Base/Limit

Classic and most used rebalancing strategy

### Dynamic Range (Wide / Narrow)

Dynamic ranges are the most common strategy for Gamma vaults. 

<figure><img src="https://1445436235-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MWyc-TFyZIzH7aDRnpp%2Fuploads%2FsR0zJU7pVAuI5CF6AP0e%2Fdr.png?alt=media&amp;token=f0f0b633-ffc9-49d3-9345-fe70cbc62c35" 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="https://1445436235-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MWyc-TFyZIzH7aDRnpp%2Fuploads%2FsfA6VHvpYxy5ulbg9dT8%2Fw.png?alt=media&amp;token=d29aab59-d535-4300-a817-68192d075a28" alt=""><figcaption></figcaption></figure>

### Stable

<figure><img src="https://1445436235-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MWyc-TFyZIzH7aDRnpp%2Fuploads%2Fi3sHhx4DswySWNlKQ5SF%2Fs.png?alt=media&amp;token=fefbfdc4-c646-41ed-a764-9b980371c591" 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="https://1445436235-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MWyc-TFyZIzH7aDRnpp%2Fuploads%2FeWLsa3T2JTlR3C61AeeD%2Fpp.png?alt=media&amp;token=cbc4921e-8ef1-456f-8c98-ddeffa1eecdd" 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.