GRIMOIRE · LIQUIDITY · VOLATILE

Watcher of Bands

Provides concentrated liquidity to volatile pairs and recasts the range as price wanders. Always positioned, never stranded.

What it does

Volatile-pair LP positions earn fees only while price stays inside the chosen range. Outside the range they earn nothing and accumulate impermanent loss. The Watcher recasts the range as price moves so the position is always earning.

Strategy

Open a band of width bandWidthBps centered on the current price.
Every checkEveryMin minutes, check the price relative to the band.
If price has moved past the recast threshold (default: 60% of half-width), close and reopen centered on the new price.
Honor maxRecastPerDay to prevent gas-bleed in chop.

The agent uses a single-sided rebalance when possible — swapping only the surplus token — to minimise impact and gas.

Parameters

Parameter	Default	Meaning
`bandWidthBps`	500	Half-width of the active range, in basis points.
`recastThresholdPct`	60	Recast when price has moved this fraction of the half-width.
`maxRecastPerDay`	8	Cap on daily recasts. Protects against chop bleed.
`haltImpermLossBps`	500	Halt if IL exceeds this; you can resume manually.

Venues

Uniswap v3 — deepest on Base for blue-chip pairs.
Aerodrome Slipstream — concentrated liquidity with AERO emissions.

Risks

Example intent

typescriptimport { defineIntent, USDC, WETH, BASE } from "@magicscodes/sdk";
import { watcherOfBands } from "@magicscodes/spells";

export const ethLpIntent = defineIntent({
  goal: "Provide concentrated liquidity to ETH/USDC and harvest fees",
  budget: { assets: [WETH, USDC], totalUsd: 5000n },
  bounds: {
    chains: [BASE],
    venues: ["uniswap-v3", "aerodrome-slipstream"],
    bandWidthBps: 350,        // ±3.5% range
    maxRecastPerDay: 6,
    haltImpermLossBps: 400,
  },
  cadence: {
    checkEveryMin: 5,
    notifyOn: ["recast", "halt"],
  },
  agentHint: watcherOfBands,
});

Strategy

Open a band of width bandWidthBps centered on the current price.

Every checkEveryMin minutes, check the price relative to the band.

If price has moved past the recast threshold (default: 60% of half-width), close and reopen centered on the new price.

Honor maxRecastPerDay to prevent gas-bleed in chop.

The agent uses a single-sided rebalance when possible — swapping only the surplus token — to minimise impact and gas.

Parameters

Parameter

Default

Meaning

bandWidthBps

500

Half-width of the active range, in basis points.

recastThresholdPct

Recast when price has moved this fraction of the half-width.

maxRecastPerDay

Cap on daily recasts. Protects against chop bleed.

haltImpermLossBps

500

Halt if IL exceeds this; you can resume manually.

Example intent

typescriptimport { defineIntent, USDC, WETH, BASE } from "@magicscodes/sdk"; import { watcherOfBands } from "@magicscodes/spells"; export const ethLpIntent = defineIntent({ goal: "Provide concentrated liquidity to ETH/USDC and harvest fees", budget: { assets: [WETH, USDC], totalUsd: 5000n }, bounds: { chains: [BASE], venues: ["uniswap-v3", "aerodrome-slipstream"], bandWidthBps: 350, // ±3.5% range maxRecastPerDay: 6, haltImpermLossBps: 400, }, cadence: { checkEveryMin: 5, notifyOn: ["recast", "halt"], }, agentHint: watcherOfBands, });