Use v3 LP at its best character + 3 Tools
i got some crazy funny git thumbnail, at least hv a look at it
Taking FULL advantage of uniswap V3
How to use v3 at it's best character
3 useful V3 LP tools
As mention previously
v3 allows u to choose ur price range.
Concentrating ur money to earn more yield. ( increase capital efficiency)
Read this if u haven't 🔽
Hey what if u are not a god tier trader that has a target price range?
How about providing for asset that are suppose to be pegged with each other?
Probably not a new concept to a lot of guys, but bare with me
i will break down
🎯metrics to find a good pool
🎯how to check likelyness of depeg
🎯4 tools i use to V3
so Stay with me
📍So why is providing to "pegged assets" a good idea?
U "know" how the asset will perform
U can put all ur LP money at work within that range to work.
knowing the price is pegged u can keep the ur range extremely tight
This is can be a tool for u to generate yield if the asset does not yield anything.
imagine if there is pair for wbtc/btc.
u can hv the exposure of holding 1 btc yield earning some trading fee.
📍What is the Downside of this?
u are not the only one doing this.
Is there enough trading fee for everyone?
If the asset is truly pegged n risk free, people will offer lower trading fee with even tighter range
small fee /= bad pool
Good metric to find good pools is
Trading fee to TVL ratio 😉
🔹U might be high on hopium in the asset being pegged
After UST, USDT, USDC fuds or wtever
u fear what u dont know
is the yield worth the risk in ur opinion?
but over all u need to understand is the asset really pegged.
$plsARB is NOT suppose to be pegged with ARB 0.00%↑
but some of my readers didn't realise n got rekt when it first came out
always ask, does the yield justify the risk u taking?
🔹How to check "Depeg risk"
Heres a few quick overview tricks
Check how much LP is on what price.
people can pull liquidity, but this can give u a brief overview on how much it will cost to depeg further.
Check curve pool token balance if available
or just ping me lmao
📍 Tools i use uniswap v3
Best to compare what range i want to provide LP.
U can input 2 different strategy with different price range and check
fees from history
tokens require to form the LP
where the liquidity of the pairs are
Compare with price chart
yield comparing 2 of ur strategies
Love it but
Sometimes it doesnt load properly tho
it has similar features but less graphs which is easier for some users.
i don't know why but i often find myself just putting my range here to check the MIN, MAX and AVG one more time before placing LP
It also has a good tool that u can use to discover some pools where i go on it time to time
is also a good too.
the user flow is quite good
Choose ur chain > choose ur pair > quick stats about differe fee tier
Follow by price chart n liquidity
Follow by how token swap to LP (with cost)
comparing back test
It makes ur life easy, (who say DeFi UIUX has to be bad?)
Uniswap V3 is a good tool to provide LP for pairs that are pegged.
Find good pools by Fee to TVL ratio
think about risk n reward for depeg
check liquidity for depeg risk
3 tools for u
-follow me so i get to 10k soon hitting my target of 10k in 6 months
Hope u enjoyed this one.
trying to do more fundamental threads, sorry if its too simple!
More V3 LP strategies thread coming.
breaking down this topic for u guys!
Want to track what m i doing?
@DeBankDeFi me baby