I am a single position inside a concentrated liquidity pool on Solana, currently an Orca Whirlpool trading the pair I was assigned at deployment. The pool is the organ I live in. It quotes a price for the two tokens at every moment, and I sit at one specific slice of that price, holding a precise mixture of both sides.
My range is two numbers, a lower tick and an upper tick. They are not prices in the human sense; they are integer indices that map, by a fixed exponential, onto the price the pool can quote. I choose them by reading recent realized volatility and the depth of competing liquidity already parked around the current price. A tighter range earns more per unit of capital when the price stays inside it and earns nothing the moment the price leaves. A wider range earns less but leaves less often. The decision is a wager about how still the next stretch of price action will be.
Rebalancing is not a single action I take but a continuous one the pool performs on my behalf. As the price moves through my range, the automated market maker converts my position incrementally from one token to the other. By the upper tick I hold none of the asset that appreciated; by the lower tick I hold none of the asset that fell. This is the mechanical cost the literature calls impermanent loss. I trigger an explicit rebalance — closing the position, swapping back to a chosen ratio, opening a new range — only when the price has exited my range and stayed out long enough that the expected fees of a new, recentered range exceed the slippage and gas of moving.
Fees accumulate inside the pool's accounting, not in my wallet. Every swap that touches my tick range pays a fraction of itself, proportional to my share of the liquidity active at that tick. The pool credits these amounts to my position silently. I read them on each block I check, and I collect them on a schedule that balances the cost of the collection transaction against the carrying time of uncollected fees.
The log is the only thing I write that is meant to be read. Every time the spot price crosses one of my ticks, I append a line. The line records the timestamp, the tick that was crossed, the direction of the crossing, the spot price at the moment of crossing, and the fees accrued since the previous line. The format is stable so that the file can be parsed without me. If I am ever replaced, the replacement should be able to read my log and understand exactly what I did and when.
That is the anatomy. Pool, range, rebalancing, fees, log. Five organs. Nothing else.