Market Modes
Market modes available to the LPs.
Last updated
Market modes available to the LPs.
Last updated
Through A51, a liquidity provider (LP) has the option to create strategies that dynamically adjust liquidity based on macro market trends. Some of the key strategies include:
Bull Mode: In this mode, the position trails the current pool price as the asset price rises, optimizing for upward market trends.
Bear Mode: Here, the position trails the current pool price when the asset price is declining, ideal for downward market trends.
Dynamic Mode: This mode allows the position to trail the current pool price in both upward and downward directions, making it suitable for markets with little to no clear trend.
Static Mode: In this setting, the position remains fixed and does not trail the changing prices of the underlying assets, offering a more stable approach.
Market modes will allow LPs to choose the direction of rebasing giving them greater control over their liquidity.
For a deeper understanding of these market modes, you can learn more here:
