Definition ∞ An adaptive strategy is a flexible approach that modifies actions based on changing conditions. This method involves continuous assessment of external influences and internal performance indicators to adjust operational tactics. Its purpose is to maintain optimal function and achieve objectives amidst unpredictable digital asset environments.
Context ∞ Within decentralized finance, adaptive strategies are vital for liquidity providers and traders to manage impermanent loss or capitalize on market volatility. Observing shifts in these strategies through on-chain data provides insight into collective market sentiment and participant reactions to new developments. The efficacy of such strategies often dictates long-term viability in rapidly evolving blockchain ecosystems.