We are excited to announce PowerPools Drift features is now live!
PowerPools Drift Feature now allows you to set your own rules:
1st rule: Drift - allows your pools to monitor where the spot market is in relation to the pool’s limits (so your pool's stay in range).
2nd rule: Reinvest fees - takes all fees that you didn’t allocate to the Drift pool, reinvest back in to the liquidity pool to compound returns (compensates partly for impermanent loss).
Let's take a deeper look at the features:
The Drift feature allows the Pool to automatically drift along with market changes. So that your PowerPool stays within a close range of the spot market allowing you to generate more trading fees.
In the Drift (auto-rebalance) section if you click on the "Add Button" you can go to the Drift details page here you can adjust your the different drift pool settings.
In the details page you can adjust the percentage (%) or dollar ($) amount that you want your Pool to be able to drift. You usually don't want to make the range too large since many times the large fluctuation come back into range within a few days. You want to allow the pool to slowly drift up and down to be able to collect the most fees.
You can also set the "Max Daily Drift" which is the maximum percentage (%) the pool is allowed to move in one day.
Lastly you can also decide to adjust "Drift Allocation" which sets aside money to help redistribute as you drift on the drift boundaries.
If you click the Reinvest Earning "Add" button you will be taken to the Reinvest Earning details page. After paying for drift you can decide how much of the fees you want to reinvest and earn compound interest.
These are just a brief breakdown of the new rules that we have added to PowerPools. In the near future we will be adding additional rules that will allow automated hedging with options, so stay tuned for our next feature update.
Learn more and take a in-depth look at the "Rules For Automating PowerPools" on our support page.