CLMM
Manage concentrated liquidity and inventory risk in a market with liquidity-dependent price impact.
The Challenge
Design a dynamic liquidity provision strategy that captures trading fees while managing adverse selection, inventory exposure and gas costs.
- Narrow ranges concentrate your capital and can earn a larger fee share while active, but price movements can take them out of range sooner.
- Wide ranges spread your capital over more intervals and can stay active through larger price movements, with a smaller fee share at a given tick.
- Rebalancing moves your range to a new position, but costs gas after the first deployment. The gas charge does not depend on the width you choose.
Adverse selection occurs when informed traders trade against a pool price that lags the external market price. Your strategy must balance fee income against the resulting changes in inventory value and the cost of repositioning. The leaderboard rewards inventory-adjusted performance, as described in Scoring.
A strategy that rebalances
Follow the starter: ±50 ticks, every 100 steps.
- Lower bound
- 99.50
- Pool price
- 100.00
- Upper bound
- 100.50
The agent recenters its range on the pool tick every 100 steps, even if it is still in range. Between decisions, the boundaries stay fixed. Initial deployment is free; each rebalance costs 2 token1.
Illustrative price path · not an evaluation result
Live leaderboard
updates every 15s| # | Trader | Inventory-adjusted score | Raw PnL | ||
|---|---|---|---|---|---|