wstETH-ETH - Minimum LVR

Strategy Objectives

1. Tick spacing: $wstETH/$ETH is a stable pair, wider ticks can be selected.

2. Fee - Dynamic: The reason for the dynamic fee is the LP's mind is to reduce LVR when ETH staking yield is distributed every day at a fixed time. More details on this can be found here.

3. Auto-Exit: The LP wants to protect themselves in the case of wstETH de-peg which has happened once in the past. A sudden drop in the price of wstETH will be a danger and LP can protect themselves from this.

4. Liquidity shape: The shape of liquidity is uniform but narrow since wstETH does not usually move much in either direction against ETH.

5. Market shifting: LP chose bull mode here because wstETH will increase in relation to ETH over the long term as the yield accumulates.

6. Use idle liquidity: Even though this will be rare because of the stability of the pool, the LP still wants to earn extra yield in case the position becomes inactive.

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