Why do Gyro’s Dynamic CLPs perform so well? The key is having a good strategy that works as a passive pool and to optimize for the right thing. Gyro pools are designed to: - optimize for profitability, not volume - don’t over-concentrate or under-cut swap fees, don’t compete with professional market makers (who are far from passive) - rake in fees while the pool is in a stable range. Pools preserve constant invariant in these times, which protects LPs while they harvest volatility. - Shift liquidity in doubly safeguarded way that’s designed to be *infrequent* and so preserve constant invariant benefits for longer (reduce implicit costs of shifting liquidity). In practice, this aims to contain toxic flow while boosting the ability to access non-toxic flow. While operating an effective volatility harvesting strategy (earn as prices wiggle back and forth naturally). Constant invariant was one of the original benefits of AMMs. Uniswap v2 has the constant product invariant. Constant invariant defines limits to the losses you can take from market movements and gives mathematical properties about passive volatility harvesting (harvesting yield as prices wiggle back and forth for a period of time). Concentrated liquidity in general negates these benefits as you lose the constant invariant every time you change position, and it’s easy to build up real losses. Gyro CLPs shine by providing solid LP strategy in a simple passive package where the calibration is already done for you. In a way that no one else offers today.