Decided to make the USDC-DEC LP have a tighter band then a larger wider band as well as a small back stop where USDC will buy DEC if it goes lower than the lowest band so we can DCA in and have the highest ROI on average. DEC usually stays pretty steady for good periods of time so I figure add a tighter range component as well as a wider range component and get the high 900% APR on the tight component and 240% on the wider component.
The wider component will be more steady over time but you can use the tight component to earn significantly more per $ over shorter periods of time and if the pair is being used then there will be a good amount of fees in it once you get he positions to the desired amount of starting principle.
Anyone in the LPS on HIVE Engine should look at some of the V3 pools as they also have some pretty high APRs and you can structure exactly the range you want to provide liquidity in which is helpful for pairs like DEC that are likely not to go to far outside of there current range very fast so you can have a tighter range and then also have a more full range portion in case it does go outside the tight range you still earn until you re balance the tighter range or hold off until it quiets down and the volatility stops. When its volatile change the LPs to have single sided positions on each side of the price so it catch's any of the volatility as well as the trades within the price range. Just need to adjust to the volatility of the market and with v4 coming out soon i believe it will be made a lot easier. Also there are some interesting protocols that have algorithmic trading bots for market making and you specify the range etc and many other inputs which can be much more exact than an LP can. Going to be trying some of those out and see if they can perform better than traditional LPs as well as make some markets on cross chain bridges that are paying a good rate along with continue to farm air drops of new promising tokens so I get a early stake in the DAOs and hold on to them for a few years once I recover any cost or impermanent loss incurred getting the tokens.
Congratulations @hive-178951! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 600 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOP