➿Automatic Liquidity Management

Zenith introduces an advanced DeFi experience through its implementation of concentrated liquidity pools, empowering users to optimize fee earnings by concentrating their funds within selected price ranges. To streamline this process and enhance capital efficiency, Zenith incorporates an Active Liquidity Management (ALM) feature, available for users when creating a liquidity position.

Why Choose ALM at Zenith?

Active Liquidity Managers, exemplified by entities like Gamma Strategies, play a vital role in navigating the intricacies of concentrated liquidity pools. They ensure continuous optimization of users' liquidity, dynamically adjusting ranges to maximize fee earnings around the clock.

Addressing the Challenges at Zenith:

Concentrated liquidity pools offer heightened capital efficiency but present challenges that ALMs are specifically designed to address:

1. Complexity: Understanding liquidity ranges and associated risks can be complex. ALMs simplify this process for users.

2. Impermanent Loss: Concentrating liquidity increases the risk of impermanent loss, and ALMs actively manage positions to mitigate this risk.

3. Active Position Management: ALMs save users time and effort by continuously supervising their liquidity positions.

Benefits of ALMs at Zenith:

1. Expert Management: ALMs manage liquidity to ensure it remains within the optimal range, adapting to changing market conditions.

2. 24/7 Optimization: ALMs operate around the clock, ensuring investments are always working at maximum potential.

3. Fee Maximization: By keeping liquidity in the most active trading ranges, ALMs help maximize users' share of transaction fees.

Managed Liquidity as a Service at Zenith:

For a reasonable fee, users can professionally manage their liquidity, making this option especially attractive for those seeking hands-off investment strategies. Zenith's integration of ALMs, such as Gamma, provides users with a trustless solution, offering the convenience of outsourced management while retaining full control over their funds.

Understanding the Liquidity Management Options at Zenith:

Zenith's concentrated liquidity pools provide users with a range of strategies, from comprehensive coverage to more focused, risk-adjusted options like 'safe,' 'common,' and 'expert' ranges. Each option comes with suggested ranges tailored to different risk appetites and fee generation potentials.