Market Modes

Market modes available to the LPs.

Through A51, a liquidity provider (LP) has the option to create strategies that dynamically adjust liquidity based on macro market trends. Some of the key strategies include:

  1. Bull Mode: In this mode, the position trails the current pool price as the asset price rises, optimizing for upward market trends.

  1. Bear Mode: Here, the position trails the current pool price when the asset price is declining, ideal for downward market trends.

  1. Sideways Mode: This mode allows the position to trail the current pool price in both upward and downward directions, making it suitable for markets with little to no clear trend.

  1. Static Mode: In this setting, the position remains fixed and does not trail the changing prices of the underlying assets, offering a more stable approach.

Market modes will allow LPs to choose the direction of rebasing giving them greater control over their liquidity.

For a deeper understanding of these market modes, you can learn more here:

pageBasic - Market Modes

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