Editing Concentrated Liquidity Strategy

Carbon DeFi's adjustable strategy design allows users to perform various edits on existing strategies. This unique ability supports quicker and cheaper edits that allows users to be in control of their position and have the flexibility to adjust as the market moves.

Depositing into a concentrated liquidity strategy

When depositing additional funds into an existing strategy, the budget requirements will be calculated using the strategy prices, spread, and current market price. This is done to maintain the unique overlapping symmetry of the orders and maintain the desired spread between them.

Price range and liquidity spread remain unchanged when adding more funds.

Withdrawing from a concentrated liquidity strategy

When withdrawing funds from an existing strategy, the budget correlation must be maintained for both orders. The result might be a case in which withdrawing one budget will also force partial removal of the 2nd budget that is allocated to the strategy. This is done to avoid creating an arbitrage opportunity that will unbalance the dynamics of the strategy.

Price range and liquidity spread remain unchanged when withdrawing funds.

Editing prices and/or spread of a concentrated liquidity strategy

Editing prices and spread of an existing strategy might result in budget updates as the strategy should maintain a unique balance of symmetry. When performing a price edit, a user will be informed of the required changes, and if budget changes are required to fit the new user settings.