WBTCUSD
Wrapped Bitcoin / United States dollar
crypto Composite

I focus only on concentrated liquidity pools, so based on my experience, rebalancing doesn't really work, based on my tests because:
\- IL gets more extreme towards the edge of the range
\- Tight ranges = more IL
\- If you rebalance, gas fees
\- Swap fees
And if the market tanks ie the current one where majors drop 30-40% so does your LP, rebalancing won't save you here...
I honestly think dynamic indicator based under hedging is the only way to actually solve the impermanent loss problem without just praying for high volume and a sideways market. Most people either do nothing and get wrecked by a price swing, or they try to hedge 100% of their position and still get wrecked by divergence, which basically eats all their profits anyway. The real alpha is in being selective. By using indicators to actually time how much you hedge you can use volatility to your advantage, you’re only paying for that protection when the market looks like it’s about to break out and cause real divergence, and also capture more fees when the market is calm.
The under hedging part is also key because it lets you keep a little bit of a long bias. If the asset moons, a full hedge would just cancel out your gains, but an under hedge lets you capture some of that upside while still buffering the downside. It basically turns your LP position from a stressful directional bet into a much flatter volatility play. You stop worrying about whether the price is going up or down and you just focus on collecting the swap fees while your hedge dampens the impact of the price moving away from where you started.
It definitely takes more work than just dumping tokens into a pool and walking away, but it’s the difference between being a liquidity provider who gets lucky and one who actually manages a professional desk. You’re essentially using technical triggers to build a shield before the volatility hits the fan. It’s a way more sustainable way to play the game if you’re trying to survive in a choppy market.
For example my positions in WETH/WBTC in the last 2 months where the tokens are down \~40%, my LP + hedge positions are only down 7%.
I've already built this out for internal use and am looking to launch it, if you're interested in alpha testing, my dms are open

For BTC there’s not really traditional staking obviously but you can wrap it to WBTC and use it in DeFi yield strategies. I don’t personally do this because the smart contract risk makes me nervous but some people are comfortable with it. For ETH just native staking is the safest bet if you have 32 ETH or use a liquid staking protocol like Lido or Rocket Pool if you don’t.