> For the complete documentation index, see [llms.txt](https://whitepaper.steakhut.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.steakhut.finance/getting-started/liquidity/steakhut-strategies/dynamic-range-strategy.md).

# Dynamic Range Strategy

## **Description**

Liquidity ranges are automatically rebalanced when certain rebalance triggers are hit. As the moving average price of the token pair crosses the predefined rebalancing triggers a rebalance is conducted.

Upon rebalancing the liquidity range is recentered around the currently active price, any remaining tokens are deployed within a second range using a "fill-up" style liquidity strategy. 

No tokens are swapped during a rebalance to mitigate any impacts caused by swap fees or slippage. 

## **Applicable Pool Types**

Stable-volatile pairs, volatile-volatile asset pairs

## **Example Pools**

AVAX-USDC, WETH.e-USDC, BTC.b-AVAX

## **Advantages**

* Rebalancing is executed automatically allowing for the optimization of liquidity to active price ranges.
* Accrued fees will be compounded back into the position regularly on behalf of LPs compounding yield.

## **Risks**

* During times of high volatility in the markets, the allocation of assets could vary quite significantly from 50/50.
* Impermanent loss may erode returns relative to your benchmark during times of high volatility and insufficient fees.


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