> For the complete documentation index, see [llms.txt](https://docs.ichi.org/home/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ichi.org/home/ascend-strategy/key-benefits.md). # Key Benefits ### **1. Centering Liquidity Around the Peg** #### **1.1 Why Center Liquidity?** Traditional liquidity strategies react to price fluctuations, which can lead to inefficient liquidity deployment. Ascend ensures liquidity remains optimally positioned around a defined peg, reducing unnecessary movements and maximizing fee earnings. #### **1.2 Defining the Peg** The peg is typically set at the current pool tick, but the strategy admin can adjust it to better reflect the ideal price in cases of market fluctuations. Liquidity is deployed within a Position Radius, ensuring it stays efficiently concentrated around the peg. ### **2. Dynamic Rebalancing** #### **2.1 How Rebalancing Works** As the pool’s price (tick) moves, Ascend automatically rebalances liquidity, ensuring it remains centered around the latest stable peg. **2.2 Optimizing Liquidity Positioning** The strategy performs swaps and repositions liquidity dynamically. This helps maximize returns while keeping liquidity in an ideal risk-adjusted range. ### **3. Median Observation for Stability** #### **3.1 Avoiding Short-Term Volatility** Rather than reacting to every price fluctuation, Ascend relies on Median Observation to make deliberate, data-driven adjustments. #### **3.2 How the Median is Calculated** The strategy takes multiple price observations over a set period (e.g., every 12 hours). It then calculates the median price, filtering out short-term noise and ensuring adjustments are based on broader trends. ### **4. Controlled Swaps for Efficiency** #### **4.1 Minimizing Slippage** Ascend executes swaps within a single tick, meaning (1) Minimal slippage (typically averaging within 0.5 ticks) and (2) The pool’s active tick never changes, ensuring liquidity stability. #### **4.2 Preventing Excessive Swaps** A Max Swap Percentage sets a cap on how much liquidity can be swapped in a single rebalance. This prevents over-adjustment and maintains safe liquidity positioning, even in pools with large external liquidity. ### **5. Periodic Adjustments for Stability** #### **5.1 When Does HarmoniQ Rebalance?** The strategy triggers rebalancing only when (1) the median peg has moved, requiring an adjustment and (2) a swap can safely increase liquidity concentration without disrupting balance. #### **5.2 Ensuring Long-Term Efficiency** Ascend's controlled, data-driven adjustments prevent unnecessary trading. This ensures sustained profitability and liquidity stability over time. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.ichi.org/home/ascend-strategy/key-benefits.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.