Documentation
Learn how to use Snuggle to manage your concentrated liquidity positions.
Performance
Strategies
What is Snuggle?
Snuggle is an automated concentrated liquidity management protocol built on Base for Uniswap V3. It uses a novel technique called "snuggle rebalancing" that eliminates swap fees, slippage, and MEV attacks.
When your Uniswap V3 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.
How Snuggle Rebalancing Works
Traditional Rebalancing (Bad)
Snuggle Rebalancing (Good)
When your position goes out of range, you hold 100% of one token. Instead of swapping, Snuggle creates a new position starting at the current price using only that token. As trading happens, you naturally accumulate the other token while earning fees.
Quick Start Guide
Connect your wallet
Click the Connect button in the top right corner.
Choose a pool
Select from WETH/USDC, cbBTC/USDC, or WETH/cbBTC.
Configure your position
Set your range width, rebalance delay, and whether to enable auto-snuggle.
Deposit and earn
Approve your tokens and deposit. You'll start earning fees immediately.
Auto-Snuggle vs Manual
Auto-Snuggle (Enabled)
When your position goes out of range, Snuggle will automatically reposition it after your configured delay.
Best for: Passive LPs who want hands-off management
Manual (Disabled)
Your position won't auto-rebalance. Use the "Snuggle Now" button when you want to reposition, or let it act as a limit order.
Best for: Active traders, limit order strategies
Range Width
Range width determines how concentrated your liquidity is around the current price.
Rebalance Delay
How long to wait after going out of range before auto-snuggling. This prevents unnecessary rebalances during temporary price spikes.
Fee-Earning Limit Orders
Snuggle can act as a limit order that pays you while you wait.
- 1. Deposit a single token (e.g., USDC)
- 2. Set your desired price range
- 3. Disable auto-snuggle
- 4. As price enters your range, you accumulate the other token
- 5. You earn trading fees the entire time
Unlike a regular limit order, you get paid for providing liquidity. And since there's no rebalance, there's no protocol fee—it's completely free.
Cost Savings
Snuggle's DCA-based rebalancing eliminates transaction costs and reduces impermanent loss by ~50%.
Traditional Rebalancing Costs
Snuggle Rebalancing Costs
Backtest Results
We backtested Snuggle against traditional swap-based rebalancing using 365 days of real WETH/USDC pool data on Base, including impermanent loss calculations.
Test Parameters
Full Cost Breakdown (TX Costs + IL)
| Period | Trad. Total | Snuggle Total | You Save | IL Reduction |
|---|---|---|---|---|
| 30 Days | $2,838 | $1,640 | $1,198 | 38% |
| 90 Days | $3,470 | $2,419 | $1,051 | 25% |
| 180 Days | $6,737 | $3,734 | $3,003 | 43% |
| 365 Days | $13,295 | $5,933 | $7,361 | 54% |
Where the Savings Come From
Key Findings
- • ~60% total cost reduction per rebalance (TX costs + IL)
- • ~50% less impermanent loss via DCA positioning
- • $0 MEV losses — sandwich attacks are impossible with zero-swap rebalancing
- • +7.4% average additional return compared to traditional rebalancing
- • ~79% of savings come from reduced impermanent loss
Methodology
How we calculated the cost savings and ran our backtests.
Traditional Rebalancing Model
When a position goes out of range, traditional rebalancers swap ~50% of the position value at the extreme price, locking in maximum impermanent loss.
Snuggle Rebalancing Model
Snuggle creates a single-sided position at the price boundary. As price retraces, you DCA into the other token at gradually improving prices.
How DCA Reduces IL
When price retraces through your range, you accumulate the other token at multiple prices instead of all at once at the extreme.
Data Sources
- • Pool data: WETH/USDC 0.3% on Base (Uniswap V3)
- • Price history: 365 days of 1-hour OHLCV candles
- • MEV estimates: Based on Flashbots Protect and EigenPhi data
- • IL model: Calculated based on actual price movements through range
Assumptions & Limitations
- • Results based on historical data; future performance may vary
- • IL reduction depends on price retracing through your range
- • In trending markets without retracement, IL is similar for both
- • DCA effect is strongest during full price retracements (~50% IL reduction)
- • Partial retracements yield ~25-40% IL reduction
- • Gas costs not included (similar for both methods on Base)
What Snuggle Does NOT Do
- • Does not eliminate IL — it reduces it by ~40-50% through DCA
- • Does not protect against trending markets — IL accumulates if price keeps moving away
- • Does not guarantee profits — concentrated LP carries inherent risks
Strategy: Set and Forget LP
The simplest strategy—deposit both tokens, enable auto-snuggle, and let Snuggle manage your position.
Recommended Settings
- • Range Width: 5-10%
- • Rebalance Delay: 24 hours
- • Auto-Snuggle: Enabled
Strategy: Buy the Dip
Accumulate ETH as price drops, while earning fees.
How It Works
- 1. Deposit only USDC into WETH/USDC pool
- 2. Set range below current price
- 3. Disable auto-snuggle
- 4. As ETH price drops into your range, you accumulate ETH
- 5. Earn trading fees the whole time
Strategy: Take Profits
Gradually sell ETH as price rises, while earning fees.
How It Works
- 1. Deposit only ETH into WETH/USDC pool
- 2. Set range above current price
- 3. Disable auto-snuggle
- 4. As ETH price rises into your range, you sell into USDC
- 5. Earn trading fees the whole time
Fees
| Action | Fee |
|---|---|
| Deposit | Free |
| Withdraw | Free |
| Harvest Fees | Free |
| Limit Orders (no rebalance) | Free |
| Snuggle Rebalance | 0.3% of position value |