DLMM Positioning Between Walls

• Automatic Fee Increases: DLMMs can automatically increase fees during periods of high trading activity, incentivizing LPs to maintain liquidity in volatile markets to meet trader demand
• Customizable Pool Parameters: Pools can use a wide range of base and max fees, as well as bin widths, to give LPs the control they need to confidently and profitably provide liquidity in volatile markets
• Advanced Allocation Strategies: Pools can use 3 different distribution patterns for allocating their capital across a range, depending on their strategy and market expectations.
• Partial Withdrawals: Positions can be partially withdrawn, including only certain bins, for a single-sided withdrawal, allowing LPs to take profits or adjust their position size without liquidating the entire position.

1. Identify Persistent Walls: Use CLOBr to find established buy and sell walls that have contained price action for a while
2. Verify Wall Quality: Confirm walls have strong stablecoin backing and significant size to ensure persistence
3. Establish Position Range: Set DLMM position with lower bound at the buy wall and upper bound at the sell wall
4. Monitor Wall Evolution: Regularly check CLOBr to ensure walls remain intact; adjust position if walls shift

1. Locate Liquidity Gaps: Use CLOBr to identify significant gaps between established liquidity zones
2. Assess Trading Volume: Verify the gap area experiences actual trading volume to ensure fee generation
3. Narrower Range Setting: Position DLMM with a tighter range focused specifically on the identified gap
4. Higher Fee Tier Selection: Consider using higher fee tiers for gap positions to maximize yield
5. Risk Management: Monitor closely as gaps may exist due to volatility or rapid price transitions

Best for: Active traders seeking higher yields, shorter time horizons, more frequent adjustments

1. Select Wall to Reinforce: Identify a wall that aligns with your market view (support wall for bullish, resistance for bearish)
2. Analyze Wall Composition: Use CLOBr's pair exposure analysis to verify wall stability before reinforcing
3. Position Asymmetrically: Place DLMM position with a short range ending at the target wall, extending a few bins out on the side you expect price to remain. This captures the fees as the price bounces off and retests the wall.
4. Token Ratio Consideration: Adjust initial token ratio to match expected price behavior around the wall
5. Defensive Parameters: Set tighter rebalancing thresholds to protect against sudden wall breakthrough

Best for: Strong market conviction, situations where you want to both earn fees and influence market structure

Market Analysis with CLOBr

• Current BONK price: $0.000029
• Major buy wall identified at $0.000025 (significant size, 80% USDC)
• Major sell wall identified at $0.000035 (significant size, 70% USDC)
• Thinner liquidity in $0.000027-$0.000033 range
• Historical trading pattern shows price often ranges between these walls

DLMM Position Strategy:

1. Strategy Selection: Range Trading Between Walls
2. Position Parameters:
   • Lower Bound: $0.000025 (at the buy wall)
   • Upper Bound: $0.000035 (at the sell wall)
   • Fee Tier: 0.2% (medium, as range is relatively wide)
   • Initial Ratio: 60% BONK / 40% USDC (slight BONK bias given current price position)
   • Allocation Pattern: Curve or spot to capture more fees during the oscillation, or Bid Ask if you plan to rebalance at the walls
3. Monitoring Plan:
   • Check CLOBr daily for wall integrity and liquidity shifts
   • Reassess position if either wall decreases by 30%+
   • Consider partial withdrawals if price approaches the upper or lower bound and walls begin to dissolve, more if the walls are significantly reduced
   • Track trading volume within range for fee optimization