V4 - MultiPosition Strategies
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Description - Rather than being evenly spread across the range, liquidity is distributed exponentially from the edges toward the price, creating a steep curve with the majority of liquidity tightly clustered around the price and rapidly diminishing toward the edges.
Benefits - Liquidity concentrated at the price maximizes fee generation when volatility is low, while the presence of thinner liquidity on the sides still allows for limited coverage during moderate price movements.
Risks - High volatility may drive the price into a low liquidity zone, reducing fee generation.
Description - Rather than being evenly spread across the range, liquidity is structured like an order book around the price to capitalize on moderate volatility.
Benefits - The two spikes around the price optimize fee generation during mean reversion after a shift.
Risks - Lower liquidity in the center (spread) may be suboptimal without mean reversion.
Description - Rather than being evenly spread across the range, liquidity follows a bell-shaped distribution, peaking at the price and tapering off smoothly toward the edges. This creates a natural curve that balances concentration and coverage.
Benefits - Liquidity is densest around the price, maximizing fee generation during stable market conditions, while the smooth taper provides more gradual protection against moderate volatility compared to sharper shapes.
Risks - High volatility may drive the price into a low liquidity zone, reducing fee generation.
Description - Rather than being evenly spread across the range, liquidity is distributed linearly from the edges toward the price, forming a triangular shape. This creates a gradual increase in liquidity toward the price.
Benefits - Liquidity concentrated around the price boosts fee generation when volatility is low, while the linear tapering toward the edges ensures some exposure to moderate price movements without excessive capital spread.
Risks - High volatility may drive the price into a low liquidity zone, reducing fee generation.
Description - Liquidity is evenly distributed across the range, forming a rectangular shape. This ensures consistent liquidity regardless of where the price sits within that range.
Benefits - Provides balanced exposure across the range, making it well-suited for capturing fees during high volatility or unpredictable price movements without requiring frequent rebalances.
Risks - Low volatility reduces fee generation compared to more concentrated shapes.
