Inactive Liquidity
A risk significantly smaller when utilizing Lixir
Inactive liquidity refers to the situation in which the price range of a pair moves out of your LP range. Normally one would have to withdraw liquidity and create a new liquidity position with a new, appropriate range, but Lixir does this for its users approximately every 6 hours if required.
Although Lixir's LP ranges are still fairly conservative and the risk of a pair's price moving out of the LP range is really low, it's still a non-zero chance worth mentioning. In case this happens, the liquidity remains inactive and hence loses out on LP fees for a couple hours at most until the new range is established.
Last modified 2yr ago