What is a Rebalance Delay?
Learn why MaxFi waits before rebalancing and how this protects your returns.
Key Takeaways
- Rebalance delay is the wait time after price leaves your range
- Waiting avoids unnecessary rebalances when prices bounce back
- Fewer rebalances means less impermanent loss
Why Wait?
When the price moves out of your range, MaxFi does not rebalance immediately. It waits.
Why? Because prices bounce around. The price might leave your range for 30 minutes, then come right back.
If MaxFi rebalanced instantly, it would trigger a rebalance that was not needed. The price would come back, and you would be in a worse position than before.
The rebalance delay prevents this.
How It Works
- Price moves out of your range
- MaxFi starts a timer (the rebalance delay)
- If the price comes back before the timer ends, nothing happens
- If the price stays out, MaxFi rebalances after the timer expires
Think of it like a thermostat. Your house goes above the set temperature. The AC does not blast on immediately. It waits to see if it was just a momentary spike.
Shorter vs Longer Delays
Short delay (1-2 hours):
- Rebalances quickly when price moves
- Gets you back in range sooner
- Good for stable pairs with small price movements
Long delay (4-12 hours):
- Waits longer for price reversals
- Avoids more unnecessary rebalances
- Good for volatile pairs where prices bounce a lot
Why Fewer Rebalances Matter
Each rebalance resets your position. Fewer rebalances means less impermanent loss. Avoiding unnecessary rebalances keeps your IL lower.
MaxFi covers all rebalance gas costs. You never pay for rebalances.
MaxFi's zero-swap rebalancing already reduces IL massively. The rebalance delay makes it even better by skipping rebalances that are not needed.
What You Learned
- Rebalance delay is the wait time after price leaves your range
- Waiting prevents unnecessary rebalances when prices bounce back
- Fewer rebalances means less impermanent loss