💎 Magma: Positions are paused when the price falls outside the range. This is the point LPs feel most in CLMMs. ➡️ When the price falls outside the range, profits are paused. If the market price is within the tick range set by the LP, liquidity is active. However, if the price falls above the upper tick or below the lower tick, the LP position is deactivated. In this state, 🟠no trade occurs 🟠no fees are incurred 🟠the assets remain converted to one token. This is similar to impermanent loss (IL) in existing AMMs, but CLMMs add the concept of deactivation. ✔️Therefore, setting and rebalancing the range becomes the core of the strategy. 💬 Comment CLMM requires management. Ignoring it will result in no profit. Strategy is everything. Source 👍Magma Official Link Website | Twitter | Discord | Korean Community | Event Announcements #Magma
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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