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

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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 🔽

https://twitter.com/2lambro/status/1670974245726478338

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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?

For example

ETH/stETH

USDC/USDT

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Probably not a new concept to a lot of guys, but bare with me

i will break down

• 🎯Risk

• 🎯metrics to find a good pool

• 🎯how to check likelyness of depeg

• 🎯4 tools i use to V3

so Stay with me

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📍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.

E.g.

wstETH/ETH

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.

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📍What is the Downside of this?

• 🔹Competitive

  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?

  u decide

  

  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

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📍 Tools i use uniswap v3

🔹@DefiLab_xyz

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

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🔹 @uniswapdotfish

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

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🔹@revertfinance

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?)

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📍In summary

• 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

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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