⚖️Recurring Rebalance Strategy

High level: You can setup recurring rebalance intents based on pool pricing, pool ratio. You can also select a time buffer for pricing or ratio based triggers to delay rebalance and avoid taking rebalance actions during highly volatile/spiky price movements.

Value Add:

• In order to rebalance you would need to manually pull liquidity, calculate the desired amount to swap, swap the desired amount, and then re-add the liquidity to a new position. The liquidity provider also needs to constantly monitor the position and take actions as needed. Aperture collapses all of this into one step with enterprise level monitoring and does the calculation for you so that there are no leftover tokens.

• Aperture sources liquidity from various different venues and find the best in class liquidity to satisfy position rebalancing needs (see more in Liquidity Source).

Example: If ETH rises by 10% compared to when the recurring rebalance is setup, then rebalance my ETH-USDC position back to 50–50 around the new spot price at the time. And optionally, a liquidity provider can choose to turn on TWAP (Time-weighted average price) to smooth things out and avoid taking rebalance actions during volatile time.

Walkthrough:

1. Connect your wallet with Aperture web app.

2. Head over to the Strategy section and also choose the chain + DEX of your choice.

3. LP can click on "+ New Strategy" and choose to start creating a recurring rebalance on an existing liquidity position or creating a new position. Aperture's friendly UX will guide you along for both cases.

To create a recurring rebalance on a new liquidity position:

4. In Step 1, click on "Open New Position" under "Option 1: Open A New Position".

5. Then follow through the create position flow to create a new position. Once position is created, the web app will return back to Step 2, when LP can start creating their recurring rebalance intent.

To create a recurring rebalance on an existing liquidity position:

4. LP can select a position from the current active liquidity position lists under "Option 2: Select An Existing Position".

5. Click on "Next step" to start configuring details for the recurring rebalance strategy on the existing position.

Configuring the details for the recurring rebalance intent:

6. Trigger setup using pool price: express the triggering condition using pool price (i.e. the price of one token expressed in another token in the pool) either by absolute token terms or by percentages

   1. Absolute token terms: e.g. The current ETH spot price is 1000 USDC, and please trigger the rebalance when the price moves 200 USDC below it.

   2. Percentages: e.g. The current ETH spot price is 1000 USDC, and please trigger the rebalance when the price moves 10% below the current spot price (which means the condition is < 900 USDC and Aperture will calculate all this under the hood for LPs).

7. Trigger setup using token ratio: LP can also choose to express the triggering condition using ratio of token in the liquidity position. For example, the LP can instruct Aperture to rebalance when ETH is above 70% for his or her ETH-USDC position.

8. Once the triggering type either by "Token Price" or "Token Ratio" is determined, LP can choose the action to take. Aperture currently supports dual action, meaning that LP can take one action when price moves below a certain range and take a different action when price moves above a certain range (ratio based trigger works in similar manner).

   

9. Aperture supports three different actions:

   1. Percentages:

      1. Rebalance the position to be +- X% around the future pool/spot price.

   2. Token Terms

      1. Rebalance the position to be +- X token (e.g. +- 100 USDC)

   3. Ratio

      1. Rebalance the position to be 50-50 split (or 20-80 split) and with a width of X tick spacing.

   4. Note: the above actions are executed when the trigger condition is met.

10. Configure advanced settings:

    1. Gas fee ceiling: controls how much gas fee users are willing to pay as a percentage of the underlying position being managed when the rebalance condition is met. There are times when rebalance is optional and the gas price is super high due to network congestion. In this case, LP may want to limit on how much they are willing to pay by placing a lower gas fee ceiling. However, the rebalance is time sensitive, a higher gas fee ceiling is recommended. Note: Aperture enforces a max gas fee ceiling of 20% and LP can not exceed this. This means the rebalance gas fee can not exceed more than 20% of the position dollar value. This is to protect the rebalance to drain the position entirely.

    2. Slippage setting: defines the max pool price difference allowed between the time the transaction is submitted and when its execution starts. Transactions will be reverted if the output token amounts do not meet the minimum thresholds calculated from this slippage setting.