Documentation

Learn how Snuggle saves you money on every rebalance through zero-swap repositioning.

What is Snuggle?

Snuggle is an automated concentrated liquidity management protocol live on Base and Arbitrum, supporting Uniswap V3, Aerodrome, PancakeSwap, SushiSwap V3, and Camelot V3. It uses a novel technique called "snuggle rebalancing" that eliminates swap fees, slippage, and MEV attacks — while massively reducing impermanent loss.

When your concentrated liquidity position goes out of range, traditional rebalancers swap tokens to reposition — costing you fees and exposing you to sandwich attacks. Snuggle does it differently.

We create single-sided positions at the current price boundary and let the pool's natural trading activity rebalance your position while you earn fees. Zero swaps. Zero slippage. Zero MEV.

Traditional rebalancing swaps at the worst possible moment — right after an extreme move. Snuggle waits for the market to come back, letting the AMM naturally rebalance you at better prices while you earn fees.

The Problem with Traditional Rebalancing

When your position goes out of range, traditional rebalancers immediately swap your tokens. This happens at the worst possible price — right after an extreme move.

Traditional Rebalancing Flow

Price moves up, exits range
You're holding 100% Token B
SWAP at the high price
Buy Token A back at the top
Create new 50/50 position
❌ IL permanently locked in

That swap crystallizes your loss permanently. You're buying Token A back at the top, after the AMM already sold it on the way up. If price reverses, you've already lost.

What Traditional Rebalancing Costs You

Swap fees0.3% - 1%
Slippage0.5% - 5%
MEV sandwich attacks0.2% - 1%
Crystallized IL1% - 3%
Total per rebalance2% - 6%

How Snuggle Rebalancing Works

Instead of swapping, Snuggle creates a single-sided position at the price boundary using only the tokens you already have.

Snuggle Rebalancing Flow

Price moves up, exits range
You're holding 100% Token B
NO SWAP
Reposition range to touch current price
Wait for price to drift back
AMM naturally rebalances you
+ Earn fees the whole time
✓ IL deferred, often reduced

As the market trades back through your range, the AMM naturally rebalances you — at better average prices. And you're earning trading fees the entire time.

Visual Comparison

Traditional

Price ──────────────────►
        ┌─────────┐
        │ Range 1 │ ← Price exits
        └─────────┘
                    ↓ SWAP at high
              ┌─────────┐
              │ Range 2 │ ← New position
              └─────────┘

❌ IL locked in at the swap

Snuggle

Price ──────────────────►
        ┌─────────┐
        │ Range 1 │ ← Price exits
        └─────────┘
                    ↓ NO SWAP
        ┌─────────┐
        │ Range 2 │ ← Edge at price
        └─────────┘
              ◄──── Price returns

✓ AMM rebalances naturally

What Snuggle Costs You

Swap fees$0
Slippage$0
MEV sandwich attacks$0 (impossible)
Protocol fee15% of earnings only
Cost on your principal$0 — always

Quick Start Guide

1

Connect your wallet

Click the Connect button in the top right corner.

2

Choose a pool and strategy

Select from 58+ pools across Uniswap V3, Aerodrome, PancakeSwap, SushiSwap V3, and Camelot V3 on Base and Arbitrum. Pick Aggressive, Moderate, or Conservative — or customize your own settings.

3

Configure your position

Set range width, rebalance delay, auto-snuggle, and auto-compound. Use the backtester to preview performance first.

4

Deposit and earn

Approve your tokens and deposit. Start earning fees immediately.

IL Crystallization vs Deferral

This is the key difference between traditional rebalancing and Snuggle.

Crystallization (Traditional)

When you swap at an extreme price, you lock in your loss permanently. Even if price reverses immediately after, you've already:

  • Sold low or bought high
  • Paid swap fees
  • Lost to MEV
  • Made the IL permanent

Deferral (Snuggle)

Snuggle defers the rebalancing to the market itself. As price moves back through your range:

  • You DCA at gradually improving prices
  • No swap fees or MEV
  • Earn trading fees while waiting
  • IL is reduced, not crystallized

The Math

Traditional rebalance at +5% price move:

  • • You swap at the extreme price
  • • If price drops 3% back, you've lost that 3% recovery
  • • Net: ~5% divergence loss locked in

Snuggle rebalance at +5% price move:

  • • You reposition without swapping
  • • If price drops 3% back, AMM rebalances you gradually
  • • Average entry at ~3.5% above start (not 5%)
  • • Net: ~3.5% divergence loss + fees earned

The Mean Reversion Advantage

Price movements often mean-revert, especially in the short term. Snuggle is designed to benefit from this natural market behavior.

How Snuggle Benefits

  • 1.Not panicking at extremesNo forced swap at the worst price
  • 2.Letting the market come backPatient repositioning at the boundary
  • 3.Earning fees while waitingYour capital is always working

The Caveat

If price keeps trending in one direction without reverting, Snuggle doesn't save you — you'll keep repositioning. But you're no worse off than traditional, and in the more common case of mean reversion, you come out significantly ahead.

Auto-Compound

Automatically reinvest your trading fees to grow your position — without any swaps or extra cost.

Smart Fee Splitting

When auto-compound is enabled, Snuggle intelligently splits your accrued fees during rebalance:

  • Matching-token fees get compounded into your new position
  • Non-matching fees go directly to your wallet as cash

This is smarter than 50/50 — we compound what can be used without swapping, and cash out the rest.

Example: Price Drops

Position is now 100% WETH

Accrued: 0.05 WETH + 100 USDC
WETH fees → Compounded
USDC fees → Your wallet

Example: Price Rises

Position is now 100% USDC

Accrued: 0.05 WETH + 100 USDC
USDC fees → Compounded
WETH fees → Your wallet

Auto-Compound ON

Matching-token fees reinvest automatically. Position grows over time.

Best for: Long-term growth

Auto-Compound OFF

All trading fees sent to your wallet during rebalances.

Best for: Regular income

Auto-Snuggle vs Manual

Auto-Snuggle (Enabled)

When your position goes out of range, Snuggle automatically repositions after your configured delay. With instant rebalancing (0h delay), positions are repositioned within minutes.

Best for: Passive LPs who want hands-off management

Manual (Disabled)

Your position won't auto-rebalance. Use "Snuggle Now" when ready, or let it act as a limit order.

Best for: Active traders, limit order strategies

Fee-Earning Limit Orders

Snuggle can act as a limit order that pays you while you wait.

  1. 1. Deposit a single token (e.g., USDC below current price)
  2. 2. Disable auto-snuggle
  3. 3. As price enters your range, you accumulate the other token
  4. 4. You earn trading fees the entire time

Unlike a regular limit order, you get paid for providing liquidity while your order fills.

Buy the Dip

Deposit USDC below current ETH price. As ETH drops into your range, you accumulate ETH — while earning fees.

Take Profits

Deposit ETH above current price. As ETH rises into your range, you sell into USDC — while earning fees.

Strategy Presets

Every pool has three optimized presets based on real on-chain liquidity data. Snuggle analyzes where each pool has the least competition and finds the best range/delay combinations for each risk level.

Aggressive

Tight ranges (0.5-3%) for maximum fee capture. More rebalances, highest return potential.

Best for: Experienced LPs comfortable with active management

Moderate

Balanced ranges (3.5-15%) that optimize for consistent returns across market conditions.

Best for: Most users — strong returns with less volatility

Conservative

Wide ranges (15-50%) for steady, lower-maintenance positions. Fewer rebalances and more stability.

Best for: Set-and-forget LPs who prefer stability

Presets are optimized per pool — a 3% range on WETH/USDC behaves very differently than 3% on WETH/cbBTC. The backtester uses the same optimization data, so you can see exactly how each preset would have performed historically.

Range Width

Range width determines how concentrated your liquidity is around the current price. Snuggle supports ranges as narrow as a single tick spacing — the tightest possible on each DEX.

Ultra-Narrow (1 tick - 2%)Maximum fee concentration, frequent rebalances
Narrow (2% - 5%)High fees, moderate rebalances
Medium (5% - 15%)Balanced approach
Wide (15% - 50%)Lower fees, fewer rebalances

Minimum Range Width by Pool

Each pool's minimum range is determined by its tick spacing — the smallest price increment the DEX supports:

Stablecoin pools — tick spacing: 1 (Uniswap 0.01%, Aerodrome CL1, PancakeSwap CL1)~0.01% minimum
PancakeSwap CL1 volatile pools (tick spacing: 1)~0.01% minimum
Uniswap V3 0.05% pools (tick spacing: 10)~0.1% minimum
Uniswap V3 0.30% pools (tick spacing: 60)~0.6% minimum
Aerodrome CL100 pools (tick spacing: 100)~1% minimum

Rebalance Delay

How long to wait after going out of range before auto-snuggling. Ranges from instant (0 hours) to 7 days.

Instant (0 hours)Rebalance within minutes—maximum time in range
Short (2 - 8 hours)Quick response, filters out brief spikes
Medium (12 - 48 hours)Wait for noise to settle
Long (2 - 7 days)Only rebalance on sustained moves

Instant Rebalancing

With a 0-hour delay, Snuggle repositions your liquidity as soon as it goes out of range — typically within 5-10 minutes. This keeps your capital earning fees almost continuously, which is especially powerful for tight ranges and high-volume pools.

Choosing Your Settings

Start with a strategy preset, then fine-tune if you want. Use the backtester to compare how different settings perform across market conditions.

How Settings Affect Returns

  • Wider range = Fewer rebalances, less fees earned, less IL exposure
  • Narrower range = More rebalances, more fees earned, more IL exposure
  • Longer delay = More time for mean reversion, but longer time out of optimal range
  • Shorter delay = Faster repositioning, maximum time in range
  • Auto-Compound ON = Position grows automatically, best for long-term
  • Auto-Compound OFF = All fees to wallet, best for income

Supported Pools

Snuggle supports 58+ pools across 5 DEXes on Base and Arbitrum, including volatile pairs and stablecoin pools.

Base

Base

3 DEXes · 38 pools
PoolDEXFee TierRewards
cbBTC / USDCUniswap V30.30%
cbBTC / USDCUniswap V30.05%
WETH / USDCUniswap V30.05%
WETH / USDCUniswap V30.30%
WETH / cbBTCUniswap V30.05%
WETH / cbBTCUniswap V30.30%
cbETH / WETHUniswap V30.01%
wstETH / WETHUniswap V30.01%
USDT / USDCUniswap V30.01%
EURC / USDCUniswap V30.05%
AAVE / WETHUniswap V30.30%
MORPHO / WETHUniswap V30.30%
USDC / cbBTCAerodromeCL100AERO
WETH / USDCAerodromeCL100AERO
WETH / cbBTCAerodromeCL100AERO
cbETH / WETHAerodromeCL1AERO
wstETH / WETHAerodromeCL1AERO
USDT / USDCAerodromeCL1AERO
EURC / USDCAerodromeCL1AERO
EURC / USDCAerodromeCL50AERO
LINK / WETHAerodromeCL100AERO
AAVE / WETHAerodromeCL200AERO
MORPHO / WETHAerodromeCL200AERO
USDC / cbBTCPancakeSwap0.01%CAKE
WETH / USDCPancakeSwap0.01%CAKE
WETH / cbBTCPancakeSwap0.01%CAKE
cbETH / WETHPancakeSwap0.01%CAKE
wstETH / WETHPancakeSwap0.01%CAKE
USDT / USDCPancakeSwap0.01%CAKE
EURC / USDCPancakeSwap0.01%CAKE
AAVE / WETHPancakeSwap0.05%CAKE
Arbitrum

Arbitrum

4 DEXes · 20 pools
PoolDEXFee TierRewards
WBTC / USDCUniswap V30.30%
WETH / USDCUniswap V30.05%
WETH / USDCUniswap V30.30%
WBTC / WETHUniswap V30.05%
USDT / USDCUniswap V30.01%
ARB / WETHUniswap V30.30%
ARB / USDCUniswap V30.30%
WETH / USDCSushiSwap V30.05%
WETH / USDTSushiSwap V30.05%
USDT / USDCSushiSwap V30.01%
WETH / USDCPancakeSwap0.05%CAKE
WBTC / WETHPancakeSwap0.05%CAKE
USDT / USDCPancakeSwap0.01%CAKE
ARB / USDCPancakeSwap0.05%CAKE
WETH / USDCCamelot V3Dynamic
WBTC / WETHCamelot V3Dynamic
USDT / USDCCamelot V3Dynamic
ARB / WETHCamelot V3Dynamic
ARB / USDCCamelot V3Dynamic

Backtest Simulator

Before depositing real funds, use our backtest simulator to see exactly how Snuggle would have performed with your chosen pool and settings.

Industry-Leading Accuracy

Our backtester doesn't just use price data — it uses real historical APY data derived from daily volume, TVL, and fee data for each pool, combined with on-chain liquidity distribution to model concentration multipliers. This is something no other protocol offers.

2+ Years
of historical data
Hourly
price resolution
On-Chain
liquidity multipliers

Simulator Parameters

Strategy Preset

Aggressive, Moderate, or Conservative—each optimized per pool from on-chain data.

Range Width (1 tick - 50%)

How wide your liquidity range is. Minimum depends on pool tick spacing.

Rebalance Delay (0 - 168 hours)

How long to wait out-of-range before rebalancing. 0 = instant rebalance within minutes.

Time Period (7 days - All Time)

Historical window to simulate. Supports 30d, 90d, 180d, 365d, 730d (~2 years), and All Time.

Auto-Compound (On / Off)

When enabled, 50% of earned fees are reinvested back into your position on each rebalance.

Important Disclaimer

Backtests use historical data and cannot predict future results. Market conditions change, and past performance is not indicative of future returns. Use the simulator to understand how different settings behave, not as a guarantee of returns.

Cost Comparison

See how Snuggle stacks up against traditional LP management.

FactorTraditionalSnuggle
Swap at rebalanceYes (at extreme)No
IL crystallizationImmediateDeferred
Swap fees0.05% - 1%None
Slippage0.5% - 5%None
MEV exposureHighImpossible
Fee earning during rebalancePausedContinuous
Mean reversion benefitLostCaptured
Auto-compound costSwap feesFree
Protocol fee0.5% - 2% of position15% of earnings only

Fee Structure

Snuggle charges a 15% performance fee on earnings only — never on your principal. We only make money when you make money.

ActionFee
DepositFree
WithdrawFree
Harvest FeesFree
Auto-CompoundFree
Limit Orders (no rebalance)Free
Performance Fee15% of earnings

How the Performance Fee Works

The 15% fee is only taken from trading fees and staking rewards your position earns. Your deposited principal is never touched.

Example: $10,000 deposit earns $1,000 in fees

Gross earnings$1,000
Performance fee (15%)-$150
You keep$850 (85%)

Referral Program

Earn 3% of your referrals' earnings — forever. This comes out of Snuggle's 15% fee, not from the user.

How It Works

1

Get your referral link

Visit the Refer page to generate your unique link.

2

Share with others

Send to friends, communities, or social media.

3

Earn forever

Get 3% of every dollar your referrals earn—permanently, in the same tokens they earn.

Fee Distribution

When your referral earns $100 in trading fees:

Your referral keeps$85 (85%)
Snuggle protocol$12 (12%)
You (referrer)$3 (3%)

The referral fee comes out of Snuggle's share — your referral pays the same 15% regardless.

Important: Past performance does not indicate future results. IL reduction depends on mean-reverting market conditions. Our contracts have undergone a comprehensive security review which you can read in full. As with all DeFi, please understand the risks before depositing.

Documentation - Concentrated Liquidity Guide | Snuggle