> For the complete documentation index, see [llms.txt](https://hawkfi.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hawkfi.gitbook.io/whitepaper/~/revisions/T1wAxuMPtKyDiqcfhDyl/hawkfi-or-high-frequency-dlmm/high-frequency-liquidity.md).

# High Frequency Liquidity

\>7x more concentrated fee-generation than passive & wide-range LP

<table><thead><tr><th width="118.41876220703125">Strategy</th><th>LP Details</th></tr></thead><tbody><tr><td>Best for</td><td><p>Highly concentrated fee generation of multi-minute to multi-hour LP with high volume <strong>or</strong> low volatility (Best case: Both). Example scenarios:</p><ul><li>Newly launched tokens</li><li>Big TGEs</li><li>Re-surging old tokens</li><li>Low volatility tokens trading sideways</li></ul></td></tr><tr><td>How it works</td><td><p>Tight-range and real-time swapless rebalanced DLMM</p><ul><li>HFL Tight: 6 bins</li><li>HFL Regular: 12 bins</li><li>HFL Wide: 18 bins</li></ul><p>*Free bin initialization fees, covered by HawkFi</p></td></tr><tr><td>Ideal entry</td><td><ul><li>During sideways/upwards-trending price action</li><li>At price support or local bottoms</li></ul></td></tr><tr><td>Risks</td><td><ul><li><p>Token price downtrend</p><ul><li>Mitigant: Stop Loss</li></ul></li><li><p>Impermanent Loss from price downtrend</p><ul><li>Mitigant: Customize auto-rebalance to up-only</li></ul></li></ul></td></tr></tbody></table>

<figure><img src="https://2398566195-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MkAAAkwc4rfI_zJDpZh%2Fuploads%2FJZ4aDlOHH0x9S7wev1eX%2FHFL.png?alt=media&amp;token=f39d62fc-266f-405b-a69e-9347c824c838" alt=""><figcaption></figcaption></figure>

## Strategy Ingredients - Customizable

<table><thead><tr><th width="182.828125">Preset Automation</th><th>LP effect</th></tr></thead><tbody><tr><td>Spot liquidity shape</td><td>Maximize gains from fee printing with tight-range spot (As compared to bid-ask, which focuses gains on swing trading)</td></tr><tr><td>Auto-accumulate SOL (AA:SOL)</td><td>Continuously take profit on fees in SOL to manage risk</td></tr><tr><td>0 minute auto-rebalance (AR)</td><td>Continuously print fees by staying in-range with 0 minute rebalances. Rebalances trigger in real-time, but multistep transaction sequence could take 30-60 seconds to execute (Future upgrades will make this faster)</td></tr><tr><td>Swapless auto-rebalance (AR)</td><td>Swapless rebalances make High Frequency Liquidity possible by enabling fast &#x26; frequent rebalances without paying DEX swap fees (hence better PnL)</td></tr><tr><td>Ping Pong auto-rebalance (AR)</td><td>Advanced swapless rebalances that auto-follow active bins (pool price) of tokens, to constantly stay 6/12/18 bins within range to print fees</td></tr><tr><td>Stop Loss (SL)</td><td>Manage risk by closing position and swapping to SOL</td></tr><tr><td>Free bin initialization fees</td><td>HawkFi covers bin initialization fees for users</td></tr><tr><td>(More Customizations Available)</td><td>After deploying a Preset, you can further customize your position automations based on market conditions and personal preferences</td></tr></tbody></table>

{% hint style="info" %}
PRO TIP: Customize autorebalance to up-only (instead of up & down) to avoid Impermanent Loss (IL) from downwards price action & rebalances
{% endhint %}

## Tutorial Videos & Case Studies

* [Deploying High Frequency Liquidity Preset](https://x.com/bradydonut/status/2005948189598441641?s=20)
* [Customizing Preset Automations](https://x.com/bradydonut/status/2006210586401722386?s=20)

## More Questions?

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

## More Infographics

<figure><img src="https://2398566195-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MkAAAkwc4rfI_zJDpZh%2Fuploads%2FPpak8TnuDX4GVLcccW0E%2Fimage.png?alt=media&amp;token=90008ffc-d506-49a3-ba42-9bebbcf6d58b" alt=""><figcaption></figcaption></figure>

<figure><img src="https://2398566195-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MkAAAkwc4rfI_zJDpZh%2Fuploads%2FlYoLcV5cl85x4y0GRVvv%2Fimage.png?alt=media&amp;token=f2fe5faf-0549-4d36-a789-1a2250e0b2b4" alt=""><figcaption></figcaption></figure>