xToken is introducing the Rebalance CLI. With the CLI, pool managers can reposition liquidity into new price ranges depending on the requirements. At the same time, the participating liquidity providers will not have to take any measures.
The Rebalance CLI will soon help projects moderate their liquidity on behalf of every LP in the pool. The liquidity providers will be saved with the new rebalancing features.
xToken recently launched the Terminal to empower projects in the domain to deploy Uniswap V3 liquidity mining programs. With the launch, users can easily configure and deploy contracts to build customized DeFi, NFT, and frontend projects.
These projects can quickly bootstrap liquidity on Uniswap pairs to free up resources and time. Similarly, liquidity providers can deposit liquidity using the platform on the supply end, and it instantly abstracts the technical factors of Uniswap V3 liquidity provisions. After depositing the liquidity, liquidity providers can instantly earn rewards.
Most projects with ongoing incentive programs can also set a price range at Uniswap V3, and it can be done once without making changes ever again. Currently, the starting Terminal version does not help projects reassess their price range on the pools.
However, some projects can leverage the Uniswap V3’s robust features to reposition liquidity into new price ranges as they become necessary. The current Terminal version would need pool creators to deploy new pools and ask liquidity providers to transfer the liquidity manually.
That is why the venture is introducing Rebalance CLI. Firstly, the pool NAV must be maintained at 99% of the pre-balance calculated by TWAP.
Secondly, pool managers can only conduct rebalancing every 24 hours, avoiding value churn. The platform will execute a seamless implementation by only allowing its access to whitelisted pools. It will make sure that there is apt internal liquidity as a safeguard. In addition, it will also ensure the pool’s external liquidity is rebalanced.
The platform is even looking for capable liquidity managers to partake in the Polygon LM competition.