Uniswap Rebalance Position

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name: rebalance-position description: Rebalance an out-of-range Uniswap V3/V4 LP position by closing the old position and opening a new one centered on the current price. Handles fee collection, removal, range calculation, and re-entry in a single workflow. Use when a position is out of range and needs adjustment. model: opus allowed-tools: [Task(subagent_type:liquidity-manager), mcp__uniswap__get_positions_by_owner, mcp__uniswap__get_position, mcp__uniswap__get_pool_info]

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Rebalance Position

Overview

When a V3/V4 LP position goes out of range, it stops earning fees. This skill handles the full rebalance workflow: collect accumulated fees, close the old position, calculate a new optimal range centered on the current price, and open a new position — all in a single operation.

This is a high-value skill because out-of-range positions are effectively dead capital. The difference between a monitored position that gets rebalanced promptly and an unmonitored one can be 15-30% APY in lost fee revenue.

When to Use

Activate when the user says:

"Rebalance my position"

"My position is out of range"

"Adjust my LP range"

"Re-center my liquidity"

"Position #12345 is out of range, fix it"

"My ETH/USDC position stopped earning"

"Move my range to the current price"

"My LP isn't earning fees anymore"

Also proactively suggest rebalancing when:

A track-performance or portfolio-report shows an out-of-range position

The user asks "why am I not earning fees?"

Parameters

| Parameter | Required | Default | How to Extract | | ------------ | -------- | ------------- | -------------------------------------------------------- | | positionId | No* | — | Position ID, or "my ETH/USDC position" (resolved by search) | | chain | No | ethereum | Chain where the position lives | | newRange | No | Auto-optimal | "narrow" (±5%), "medium" (±15%), "wide" (±50%) |

*If no position ID: search with get_positions_by_owner, filter for out-of-range positions, and confirm with the user.

Workflow

Pre-Rebalance Analysis

Before executing anything, gather data and present the situation to the user:

Step 1: IDENTIFY THE POSITION
├── If position ID given → fetch via get_position
├── If "my X/Y position" → search via get_positions_by_owner
│   ├── Filter by token pair and out-of-range status
│   ├── If multiple out-of-range → list all, ask which one
│   └── If none out-of-range → "All your positions are in range!"
└── Validate: confirm the position IS actually out of range
Step 2: ANALYZE CURRENT SITUATION
├── Current pool state via get_pool_info
│   ├── Current price
│   ├── Pool TVL, volume, fee APY
│   └── Tick distribution (where is liquidity concentrated?)
├── Position details
│   ├── Current tick range (lower, upper)
│   ├── How far out of range (above or below?)
│   ├── Uncollected fees
│   ├── Current token balances in position
│   └── Time since going out of range (if estimable)
└── Cost-benefit calculation
    ├── Estimated gas cost for full rebalance (remove + add = ~$30-60 on mainnet)
    ├── Estimated daily fee revenue if rebalanced (from pool APY + position size)
    ├── Break-even time: gas_cost / daily_revenue
    └── If break-even > 30 days → WARN that rebalancing may not be worth it

Present the Rebalance Plan

Before executing, show the user exactly what will happen:

Rebalance Plan for Position #12345
  Current Situation:
    Pool:      WETH/USDC 0.05% (V3, Ethereum)
    Status:    OUT OF RANGE ⚠ (price moved above your range)
    Current:   $1,963
    Your range: $1,500 - $1,800 (position is 9% above upper bound)
    
  Uncollected Fees: 0.01 WETH ($19.60) + 15.20 USDC ($15.20)
  Position Value: ~$3,940
  Proposed New Range:
    Strategy: Medium (±15%)
    Lower:    $1,668 (current - 15%)
    Upper:    $2,258 (current + 15%)
    Expected time-in-range: ~80-85%
  Cost:
    Gas (remove + add): ~$35
    Break-even: ~2 days at current fee APY
  Steps:
    1. Collect uncollected fees ($34.80)
    2. Remove all liquidity from position #12345
    3. Add liquidity at new range ($1,668 - $2,258)
    4. New position created with new NFT ID
  Proceed? (yes/no)

Execution (after user confirms)

Step 3: DELEGATE TO LIQUIDITY-MANAGER
├── The agent executes atomically:
│   a. Collect fees from old position
│   b. Remove 100% liquidity from old position
│   c. Calculate new tick range based on:
│      - Current pool price
│      - Selected range strategy (narrow/medium/wide)
│      - Pool tick spacing
│   d. Approve tokens for new position (if needed)
│   e. Add liquidity at new range
│   f. Each step validated by safety-guardian
└── Returns: old position closed, fees collected, new position ID, new range, tx hashes
Step 4: PRESENT RESULT
├── Confirmation of old position closure
├── Fees collected (amounts + USD)
├── New position details (ID, range, amounts deposited)
├── Total gas cost for the operation
├── Net cost/benefit of the rebalance
└── Next steps for monitoring

Range Strategy Guide

When the user doesn't specify a range, use this decision framework:

| Pair Type | Recommended Range | Width | Rationale | | --------------------- | ----------------- | ------ | --------------------------------------------------- | | Stable-stable | Narrow | ±0.5% | Price barely moves; maximize capital efficiency | | Stable-volatile | Medium | ±15% | Balance between earning and avoiding rebalance | | Volatile-volatile | Wide | ±30% | Reduce rebalance frequency; accept lower APY | | User says "aggressive"| Narrow | ±5% | Higher fees but frequent rebalancing needed | | User says "passive" | Wide | ±50% | Low maintenance, lower returns | | Small position (<$1K) | Wide | ±50% | Gas costs make frequent rebalancing uneconomical |

When NOT to Rebalance

Proactively advise against rebalancing in these situations:

| Situation | Advice | | ----------------------------------------- | ------------------------------------------------------------ | | Position size < 10x gas cost | "Gas would cost ${gas} but your position is only ${value}." | | Price is near range boundary (within 2%) | "Price is close to your range — wait to see if it re-enters."| | Position went out of range < 1 hour ago | "Give it time — price may return to your range." | | User has no strong view on direction | "Consider a wider range to reduce future rebalances." | | Break-even time > 14 days | "At current fee rates, rebalancing won't pay for itself for {days} days." |

Output Format

Successful Rebalance

Position Rebalanced Successfully
  Old Position: #12345 (CLOSED)
    Received: 0.52 WETH + 950 USDC ($1,970)
    Fees collected: 0.01 WETH + 15.20 USDC ($34.80)
  New Position: #67890
    Pool: WETH/USDC 0.05% (V3, Ethereum)
    Deposited: 0.51 WETH + 965 USDC ($1,960)
    Range: $1,668 - $2,258 (medium, ±15%)
    Current: $1,963 — IN RANGE ✓
    
  Cost:
    Gas: $32.50 (2 transactions)
    
  Net: Position rebalanced with $2.30 lost to gas
       Now earning ~15-21% APY in fees
  Txs:
    Remove: https://etherscan.io/tx/0x...
    Add:    https://etherscan.io/tx/0x...
  Monitor: "How are my positions doing?" or "Track position #67890"

Position Already In Range

Position #12345 is IN RANGE ✓
  Pool:    WETH/USDC 0.05% (V3, Ethereum)
  Current: $1,963
  Range:   $1,700 - $2,300
  Status:  Actively earning fees
  No rebalance needed. Your position is healthy.
  
  Uncollected fees: $34.80
  Want to collect them? (This doesn't affect your position.)

Important Notes

Always confirm before executing. Rebalancing involves closing and reopening a position — it's irreversible.

Gas matters. On Ethereum mainnet, a full rebalance costs $30-60 in gas. On L2s (Base, Arbitrum), it's < $1. Factor this into recommendations.

IL is locked in. When you close a position, any impermanent loss becomes realized. Mention this if the position has significant IL.

New NFT ID. The rebalanced position gets a new NFT token ID. The old one is burned. Make sure the user understands this.

V2 positions cannot be rebalanced — they have full range. If a user asks to rebalance a V2 position, explain that V2 positions cover the entire price range and don't go "out of range."

Slippage on exit. For large positions relative to pool TVL, exiting may cause slippage. Warn if position is > 5% of pool TVL.

Error Handling

| Error | User-Facing Message | Suggested Action | | ------------------------------ | ---------------------------------------------------------- | --------------------------------------- | | Position not found | "Position #{id} not found." | Check ID and chain | | Position already in range | "Position is already in range — no rebalance needed." | Show position status instead | | V2 position | "V2 positions cover the full price range and can't go out of range." | Explain V2 vs V3 differences | | Wallet not configured | "No wallet configured for transactions." | Set WALLET_TYPE + PRIVATE_KEY | | Insufficient gas | "Not enough ETH for gas." | Fund wallet with ETH | | Safety check failed | "Safety blocked the rebalance: {reason}" | Review safety configuration | | Remove tx failed | "Failed to remove liquidity: {reason}" | Check position status and try again | | Add tx failed | "Removed old position but failed to add new one." | Tokens are in wallet; retry add manually| | liquidity-manager unavailable | "Liquidity agent is not available." | Check agent configuration |