Intelligent Liquidity Management
Liquidity Management
Liquidity management can be painful. It’s often unclear to LPs what price range they should provide liquidity at and how they should allocate liquidity at different price ranges. This often leads to poor capital utilization, lower fee earning, higher impermanent loss, and eventually, lower or even negative market-making returns.
Successful liquidity management requires LPs to predict the future price, withdraw their liquidity, estimate the optimal allocation, and re-inject liquidity at that time. This requires 1) the infrastructure or tools to rebalance their liquidity when the token price fluctuates; 2) extensive statistical knowledge to predict the price distribution and the optimal token allocation strategy. Unfortunately, this knowledge is far beyond the sophistication level of regular project builders.
MovEX's Intelligent Liquidity Allocation Service
MovEX is more than a DEX. We democratize our liquidity management tools for every MovEX user. Our liquidity allocation engine runs an optimizer internally, produces the mathematically proven optimal liquidity allocation under a particular utility function, and automatically adjusts the liquidity for users in a decentralized and non-custodial fashion. We help LPs avoid the hustle of manually adjusting liquidity and boost their capital efficiency and market-making returns
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