To rebalance after a token rally, withdraw your pool share, trade to your chosen mix, then deposit again. A pool is a shared stash of two tokens that traders swap between. Its mix can change as prices move, so first check what you actually hold.
Check how the rally changed your position
In a standard pool, traders and arbitrage bots shift the token amounts as the market price changes. Arbitrage bots buy a token where it is cheaper and sell it where it is more expensive, bringing the pool price closer to other markets.
For example, say you deposited 1 ETH and 3,000 USDC when ETH was worth $3,000. If ETH doubles, a standard pool position might be worth about 0.71 ETH and 4,240 USDC. The pool has already sold some ETH as its price rose; its value is now split roughly evenly between the tokens.
That automatic shift can leave you with less of the winner than if you had simply held your original tokens. This difference is called impermanent loss: the gap between your pool position and holding the same tokens outside the pool. If your aim is a different mix, such as 60% ETH and 40% USDC, you need to withdraw and rebalance yourself.
Withdraw, trade, and set your target mix
- Check your position. Connect your wallet to SushiSwap on the same blockchain where you supplied liquidity. Open the pool position and note its token amounts, current value, and any uncollected fees. A blockchain is a network that records transactions; your wallet needs that network’s native token to pay its transaction fee, called gas.
- Remove your liquidity. Choose the position and withdraw the amount you want to rebalance. A liquidity position represents your share of the pool. Some pools use a receipt token to track that share; a concentrated-liquidity position, which works within a chosen price range, may appear as a separate position instead.
- Choose your target in dollar terms. If your withdrawn tokens are worth about $8,480 and you want 60% ETH, aim for about $5,090 of ETH and $3,390 of USDC. That makes the decision clear even when the token quantities look unequal.
- Swap the difference. Trade USDC for ETH, or the other way around, until your wallet is near the target. SushiSwap routes a swap through available pools to find a path between tokens; check the quoted output, price impact (how your trade size moves the price), and displayed fee before approving it. The fee varies by pool, and gas varies by network and congestion.
- Deposit the new mix. Open the same pool and enter the amounts. Check that the pool accepts your ratio: a standard pool often needs similar dollar values of each token, while a concentrated position’s required mix depends on its price range. Review the final amounts, then approve the tokens and confirm the deposit in your wallet.
Check the result before repeating
After the deposit confirms, verify that the position appears in your wallet or pool list and record its new amounts and value. Rebalancing costs gas and may incur a swap fee, so compare those costs with the value of the mix you want to maintain.
A sharp rally does not mean you must act: the pool has already adjusted its holdings as traders swapped. Withdraw and rebalance when the position’s current mix no longer fits your plan, then check it again after a large price move.