Concentrated Liquidity
Learn about manual concentrated liquidity positions powered by Algebra Integral v4 for advanced traders and liquidity providers.
Quick Start (TL;DR)
Manual Concentrated Liquidity in 30 seconds: Create your own precise liquidity positions with Algebra Integral v4 → Choose exact price ranges → Earn trading fees directly → Full control over your strategy. Perfect for experienced DeFi users who want maximum control.
Supercharge Your Strategy with AI Agents: Let our AI agents optimize your liquidity positions automatically. From position monitoring to strategic rebalancing, our agents can help maximize your returns across all pool types. Learn more about AI Agents.
What is Manual Concentrated Liquidity?
Manual concentrated liquidity gives you complete control over your liquidity provision strategy. Instead of relying on automated management, you personally choose the exact price ranges where your capital is active, when to rebalance, and how to optimize your positions.
This approach is powered by Algebra Integral v4, one of the most sophisticated AMM engines available, providing institutional-grade features for advanced users.
Precision Control
Your decisions: Set exact price ranges based on your market analysis, risk tolerance, and yield expectations. No algorithms making choices for you.
Maximum Efficiency
Capital optimization: Concentrate your funds precisely where you expect trading to occur. Potentially 1000x more capital efficient than traditional AMMs.
Strategic Advantage
Market insights: Use your knowledge of market trends, news, and technical analysis to position liquidity for maximum returns.
Full Customization
Your strategy: Implement complex strategies, experiment with different approaches, and adapt quickly to changing market conditions.
How Algebra Integral v4 Powers Manual Positions
Thirdfy's manual concentrated liquidity is built on Algebra Integral v4, providing advanced AMM technology:
Advanced Technical Features
Dynamic Fee Structure Fees automatically adjust from 0.01% to 1% based on market volatility. During high volatility periods, fees increase to compensate for impermanent loss risk. During stable periods, fees decrease to encourage more trading volume.
Active Liquidity Tracking The protocol precisely tracks which liquidity is "active" (within the current trading price) and only rewards active positions. This ensures fair distribution and prevents gaming.
MEV Protection Built-in protections against sandwich attacks, front-running, and other forms of MEV exploitation, ensuring fairer outcomes for liquidity providers.
Gas Optimization Advanced algorithms minimize gas costs for position creation, management, and fee collection operations.
Flexible Tick Spacing Choose from multiple tick spacings to match your strategy - tighter spacing for precise range control or wider spacing for lower gas costs.
Creating Manual Positions: Step-by-Step
Ready to create your first manual concentrated liquidity position? Here's the complete process:
1. Choose Your Trading Pair
Select the token pair you want to provide liquidity for. Consider:
- Trading volume - Higher volume = more fee opportunities
- Volatility - Affects fee rates and rebalancing frequency
- Your holdings - Use tokens you already own to avoid swap costs
- Market outlook - Choose pairs where you have strong market views
2. Analyze the Market
Before setting ranges, research:
- Historical price action - Where has most trading occurred?
- Support/resistance levels - Natural boundaries for your ranges
- Current market conditions - Bull/bear market affects optimal strategies
- News and events - Upcoming catalysts that might affect price
3. Set Your Price Range
Define your liquidity boundaries:
- Minimum price (lower tick) - Where you stop earning fees below
- Maximum price (upper tick) - Where you stop earning fees above
- Range width - Narrower = higher fees but more management needed
- Current price position - Where current price sits within your range
4. Calculate Token Ratios
The protocol automatically calculates required token amounts based on:
- Your chosen price range
- Current market price
- Desired liquidity amount
- Available token balances
5. Deploy Your Position
Submit the transaction to create your position. You'll receive an NFT representing your unique liquidity position with its specific parameters.
6. Monitor and Manage
Track your position performance:
- Fee earnings - Accumulated trading fees
- Price movement - How close current price is to your range boundaries
- Volume trends - Whether your range is capturing trades
- Impermanent loss - Temporary value changes due to price divergence
Position Management Strategies
Successful manual liquidity provision requires active management. Here are proven strategies:
Range Selection Strategies
Wide Ranges (Conservative)
- Pros: Less rebalancing needed, lower gas costs, more stable returns
- Cons: Lower capital efficiency, fewer fees per dollar deployed
- Best for: Beginners, volatile markets, long-term holders
Narrow Ranges (Aggressive)
- Pros: Maximum capital efficiency, higher fees when active
- Cons: Frequent rebalancing needed, higher gas costs, more complex
- Best for: Experienced users, stable markets, active managers
Multiple Positions
- Strategy: Create several positions with different ranges
- Benefits: Diversified exposure, different risk/reward profiles
- Management: Each position managed independently
Rebalancing Techniques
Threshold Rebalancing
- Rebalance when price approaches range boundaries (e.g., 80% to edge)
- Proactive approach prevents going out of range
- Higher gas costs but maintains earning potential
Boundary Rebalancing
- Wait until price exits your range completely
- Lower gas costs but periods of zero earnings
- Suitable for less active management styles
Profit Taking
- Periodically claim accumulated fees
- Compound fees back into positions or diversify
- Balance between growth and risk management
Advanced Features and Tools
Maximize your manual liquidity success with these advanced capabilities:
Position Analysis Tools
Backtesting
- Analyze how your strategy would have performed historically
- Test different range widths and rebalancing frequencies
- Optimize before deploying real capital
Fee Calculators
- Estimate potential returns based on historical volume
- Compare different ranges and strategies
- Account for gas costs and rebalancing frequency
Impermanent Loss Tracking
- Monitor temporary value changes due to price divergence
- Understand when IL is offset by fee earnings
- Make informed decisions about position adjustments
Integration Options
Ecosystem Participation While manual positions don't currently receive TFY emissions, you can still participate in the broader Thirdfy ecosystem:
- Convert earnings to TFY/xTFY for governance participation
- Stack strategies by providing manual liquidity AND staking xTFY
- Future integration planned as the system evolves
Manual vs Automatic: When to Choose Each
Understanding when manual concentrated liquidity makes sense for your situation:
Important: Currently, TFY/xTFY emissions from gauge voting are only available on Automatic Pools. Manual concentrated liquidity positions earn trading fees only, without access to community-directed emissions or the governance reward system.
Choose Manual When:
✅ You want full control over ranges
✅ You have strong market predictions
✅ You enjoy active position management
✅ You want to experiment with strategies
✅ You're experienced with DeFi
✅ You have time for regular monitoring
❌ No TFY emissions currently available
Risk Management
Manual concentrated liquidity requires understanding key considerations:
Impermanent Loss
- What it is: Temporary value reduction when token prices diverge
- Mitigation: Choose correlated assets, monitor closely, adjust ranges strategically
Position Management
- Active monitoring: Positions require regular attention and potential rebalancing
- Range optimization: Wrong range settings can impact returns
- Best practices: Start small, use available tools, maintain disciplined strategies
Gas Optimization
- Rebalancing costs: Frequent adjustments require gas fees
- Efficiency tips: Batch operations when possible and time transactions optimally
Getting Started
Ready to try manual concentrated liquidity? Here's your path:
Best Practices Summary
Maximize your success with manual concentrated liquidity:
Range Selection
Research first: Use historical data and market analysis to choose ranges where you expect significant trading activity.
Active Monitoring
Stay engaged: Check positions regularly, especially during volatile periods. Set alerts for when price approaches range boundaries.
Risk Management
Diversify wisely: Don't concentrate all capital in one narrow range. Use multiple positions with different risk profiles.
Continuous Learning
Improve constantly: Track performance, learn from mistakes, and refine your strategies based on experience.
Ready to Take Control?
Manual concentrated liquidity offers maximum control for experienced DeFi users:
New to concentrated liquidity? Consider starting with Automatic Pools to learn the concepts before moving to manual management.