The nº 1 reason why concentrated liquidity positions lose money because nobody wants to babysit them 24/7 📉
reCLAMMs just solved this with automated range management that actually works
Here's how self-adjusting changes everything and enable LPs to sleep soundly at night 🧵
The problem with CLMMs:
Your position goes out of range → stops earning fees → you manually rebalance → pay gas → repeat forever
Only a few CLAMM LPs are profitable, and to be profitable, they have to dedicate a lot of time studying and taking care of the pools.
reCLAMMs flip this situation
Instead of discrete "ticks" that you jump between, they use gradual gliding
When price moves outside your target range, the pool slowly adjusts itself back into position
No manual intervention needed
Three parameters control everything:
Daily price shift rate = how fast it can adjust
Margin = the target range buffer
Initial price range = starting position
Set these once and walk away. Smart contract logic handles the rest.
Here's the key difference:
On Tick-based systems: Price moves → your position dies → you manually fix it
reCLAMMs: Price moves → pool gradually shifts → position stays active
You never "go out of range" in the traditional sense
The gradual glide means that instead of atomic jumps that create MEV opportunities, reCLAMMs smoothly transition virtual balances over time
This eliminates the buy-high-sell-low problem that kills most LP strategies
This system is also more safe because it has no oracle dependencies
The pool uses actual trading activity to determine price movements, not external feeds
Can't be manipulated by oracle attacks or data provider failures
Everything happens on-chain
This mechanism is perfect for different scenarios:
High volatility: Stays active while manual positions get rekt
Stablecoins: Maintains tight ranges without oversight risk
Institutions: Deploy large capital without dedicated management teams
3.13K
2
The content on this page is provided by third parties. Unless otherwise stated, OKX TR is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX TR. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX TR is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.