What is Piping?

Piping (also known as pool pipes) is a DeFi trading strategy. The strategy encourages the seamless rebalancing of liquidity across different liquidity pools.
It can used by DeFi farmers as the ultimate liquidity mining tool.

When to ‘pipe’ (aka. rebalance)?

A rebalance trigger will signal to your smart contact to rebalance your tokens. The trigger fires based on a set of preconfigured goals and risk tolerance.

The following scenarios could be a reason to rebalance your profile:

Changes in liquidity provisioning incentives
Case studies like SNX, whom have rebalanced their incentives across liquidity pools.

Changes in trading activity within liquidity pools

As more liquidity providers join liquidity pools. Some LP's can can capture more yield by moving some of the assets around to other pools. Since fees generated from exchanges are proportionally split between all the liquidity providers of that pool. It may be opportunistic to diversity to lower trading volumed pools.

Changes in the underlying asset price

As the price of underlying assets change, liquidity providers could benefit. By reallocating liquidity between pegged and stable pools.

Changes in Pool yield optimizations

As many yield farmers know. Switching between liquidity pools to capture the highest yield could be very beneficial. A pool pipe automates this process and anyone is able to move liquidity between any pools.