Tight
Maximum fees, higher risk
Balanced
RecommendedBest trade-off
Defensive
Lower IL and churn
Approximate range widths based on typical market conditions. These are calculated using the formula: Width = Volatility × √T × 1.5
Formula: Width = max(vol24h, vol7d/√7) × √days × 1.5 (safety multiplier)
Narrow ranges require frequent rebalancing and have higher IL exposure. Best for active management.
Width < 15%
Balanced ranges offer good fee capture with manageable IL risk. Ideal for most LPs.
Width 15-30%
Wide ranges minimize IL and rebalancing needs. Best for passive strategies.
Width > 30%
| Strategy | SOL (Calm ~5% vol) | SOL (Volatile ~10% vol) | BTC (Calm ~3% vol) | BTC (Volatile ~6% vol) |
|---|---|---|---|---|
| Tight (1d) | ~7% | ~15% | ~4% | ~9% |
| Balanced (10d) | ~24% | ~47% | ~14% | ~28% |
| Defensive (30d) | ~41% | ~82% | ~25% | ~49% |
Tip: During high volatility periods (orange values), consider using the Defensive strategy to reduce rebalancing frequency. In calm markets, the Tight strategy can generate more fees.