Active Liquidity Management

ALMs (Active Liquditiy Managers) have been integrated into Pearl to simplify the process and maximize rewards outcomes for users who are not interested in or capable of manually managing CL positions.

Concentrated liquidity pools have many benefits, as covered earlier in the docs.

However, CL also introduces new challenges.

1. Impermanent loss (IL) can be amplified if liquidity is left unmanaged in concentrated pools with high volatility.

2. Rewards distributions are limited to liquidity currently in the active range.

Providing liquidity has now become a competitive endeavor as LPs compete to capture the as much trading volume as possible within their provided liquidity band, thus maximizing fee capture.

The simple act of providing liquidity has become substantially more complex and risky for the average DeFi user.

Active Liquidity Managers (ALMs)

Active Liquidity Managers (ALMs) are programs created to help users navigate the many challenges of concentrated liquidity.

Trident by Pearl and ICHI both offer solutions to the risks and complexities of providing concentrated liquidity.

These ALMs optimize liquidity performance on Pearl, mitigating impermanent loss while seeking to maximize fee accrual using our proprietary strategy.