Pool

If the price moves out of your set range in a liquidity pool, it means that the current market price of the assets has moved beyond the minimum or maximum limits you specified. When this happens, your liquidity is no longer being used to facilitate trades in the pool, and you stop earning transaction fees. This scenario is indicated by a red dot under your positions, signaling that your liquidity is not actively generating returns.

In such a situation, you have a couple of options:

1. Rebalance Your Range: Go to your position and adjust the minimum and maximum price limits. This involves withdrawing your liquidity and redeploying it at a new price range that is more aligned with the current market conditions. This rebalancing helps to ensure that your liquidity is active and you are earning fees again.
2. Use Position Management Tools

• Smart Pools: These are tools or services that automatically adjust your price range based on certain algorithms or market indicators. They aim to optimize your position to ensure that it remains within a profitable range.
• Other Position Managers: Tools like DeFi Edge and Gamma offer more sophisticated management features. They provide analytics and guidance to help you make informed decisions about adjusting your liquidity position to adapt to market changes.

It's important to monitor your positions regularly and be prepared to adjust your strategy, especially in volatile market conditions. Using these tools and strategies can help maintain the effectiveness and profitability of your liquidity provision.

If the price moves out of your set range in a liquidity pool, it means that the current market price of the assets has moved beyond the minimum or maximum limits you specified. When this happens, your liquidity is no longer being used to facilitate trades in the pool, and you stop earning transaction fees. This scenario is indicated by a red dot under your positions, signaling that your liquidity is not actively generating returns.

In such a situation, you have a couple of options:

1. Rebalance Your Range: Go to your position and adjust the minimum and maximum price limits. This involves withdrawing your liquidity and redeploying it at a new price range that is more aligned with the current market conditions. This rebalancing helps to ensure that your liquidity is active and you are earning fees again.
2. Use Position Management Tools

• Smart Pools: These are tools or services that automatically adjust your price range based on certain algorithms or market indicators. They aim to optimize your position to ensure that it remains within a profitable range.
• Other Position Managers: Tools like DeFi Edge and Gamma offer more sophisticated management features. They provide analytics and guidance to help you make informed decisions about adjusting your liquidity position to adapt to market changes.

It's important to monitor your positions regularly and be prepared to adjust your strategy, especially in volatile market conditions. Using these tools and strategies can help maintain the effectiveness and profitability of your liquidity provision.