Strategies
Spot Strategy
Spot allows uniform capital distribution, making it a versatile and risk-adjusted strategy suitable for any market condition. ☄️
DLMM Spot LP Strategy
Spot can be similar to setting a CLMM price range, allowing spot users to trade at various prices.
Key Characteristics
- Simplicity : The spot strategy is straightforward, making it perfect for new and less experienced liquidity providers who prefer less frequent rebalancing.
- Flexibility : LPs generate fees whenever, regardless of the price, by distributing the liquidity equally across the given price range.
- Higher chances of Impermanent Loss : Of the basic 3 i.e bid ask,cure ,spot is the one in which you can have the greatest Impermanent loss as the liquidity is distributed equally which is not the case for other 2.