Band Rebalancing AMM

A new approach to LP profitability

Antfarm Finance's band rebalancing strategy is a cutting-edge approach to liquidity management in the DEX space. This strategy is aimed at assisting liquidity providers to maximize profits while minimizing their exposure to risks.

The band rebalancing strategy is based on setting upper and lower threshold bands for each liquidity pool, with the threshold value determined by the pool's fee. The purpose of this approach is to capitalize on market volatility and optimize overall profits while minimizing exposure to risk :

Typically, band rebalancing is carried out manually by traders who continuously monitor the market and adjust their positions accordingly. A significant advantage of Antfarm's implementation of this strategy is that it leverages external arbitrage bots to exploit market inefficiencies and further optimize the portfolio's performance.

By integrating this strategy with Antfarm's pools, arbitrage bots trigger the rebalancing of Antfarm's pools when the market deviates significantly (and thus when a pool deviates from its band) creating arbitrage opportunity, making this strategy fully automated. This automated approach ensures that liquidity providers are less exposed to risks and can benefit from more optimized returns.