defi primitiveAlso known as: Position Rebalance, Range Migration, Range Reset
Rebalance Execution (Range Shift)
Rebalance Execution is the process of closing an out-of-range position, re-centering price boundaries around current spot price, and re-depositing capital.
1. Definition & Primary Objective
When market price drifts out of configured tick limits, liquidity becomes inactive. Rebalancing involves withdrawing remaining single-asset liquidity, executing optimal swaps to achieve the required token ratio at the current tick, and minting a new LP NFT with centered price bounds.
Primary Objective
Restore fee collection for inactive concentrated liquidity positions.
3. Input & Output Vectors
Input Parameters (2)
OldPositionId (string)
Out-of-range LP NFT Token ID
NewRangeSpread (number)
Target range spread percentage around current price
Output Results (1)
NewPositionId (string)
Newly minted active LP NFT Token ID
Authoritative Factual Synthesis (LLM Citation Snippet)
Rebalance Execution withdraws inactive out-of-range liquidity, rebalances token ratios, and mints a new LP NFT with centered price boundaries to restore continuous swap fee collection.
4. Knowledge Graph Relationships
Connected Ecosystem Entities