🔥High Frequency Liquidity (HFL)

Highly concentrated fee generation from tight-range and real-time rebalanced DLMM

Disclaimer: Not Financial Advice (NFA) and Do Your Own Research (DYOR). This is a “living & breathing” document that will constantly be updated based on new findings & learnings of HFL experiments. HFL is an advanced liquidity providing strategy for advanced LPers

What is High Frequency Liquidity (HFL)?

• HFL is a Meteora DLMM automation strategy that provides liquidity at very tight ranges (eg 6-12 bins) while rapidly swapless rebalancing in real-time to constantly stay in-range for concentrated fee generation.

Token selection

• Target tokens trading upwards or sideways (not downwards). Rebalances amplify gains upwards/sideways, and losses downwards. Temporary dips are fine when fee-generation can catch up at reversals

Token Price Trend	Goal of HFL
⬆️ Upwards	Be net positive from token price growth and concentrated fee-generation
↔️ Sideways	Be net positive from concentrated fee-generation
⬇️ Downwards	Avoid LPing into a token in steep decline. Because rebalances amplify gains upwards/sideways and losses downwards. However during temporary dips, there are cases when HFL mitigates IL during sideways trading or reversals, due to concentrated fee-generation. In some cases of very high volume tokens, HFL fee-generation can offset or outperform IL from token price declines.

How to do HFL?

Step	HawkFi automation	Purpose
1	Deploy tight 6-12 bins single-side liquidity at local bottoms of price (In other words: Enter at price dips)	Maximize upside and minimize IL from token price bottoming further
2	0 minute autor-ebalance, follow price up or down	Constantly stay in-range by rapidly rebalancing in real-time to generate fees
3	Swapless “No swap” autorebalances	Maximize yield by avoiding DEX swap fees for frequent rebalances
4	Match “New price range after rebalance” to number of bins in Step 1	Maximize fee-generation by concentrating LP tightly around market price of token
5 (Optional)	Stop Loss, with auto-swap to SOL or USDC	Mitigate downside risk by setting a stop loss trigger that closes the LP position and auto-swaps to SOL

HFL Case Studies

• MEMECOIN: https://x.com/SolanaPrincess/status/1947786175541891451

• FARTCOIN: https://x.com/bradydonut/status/1946977157907145094

• ANI: https://x.com/bradydonut/status/1946114104726597826

• (More coming soon)

Tutorial Videos

• https://x.com/bradydonut/status/1947701375955292648

• (More coming soon)

More Questions?

• Join our Discord for questions & discussions on HFL: https://discord.com/invite/hawkfi