The Power of Tight Range LP

in LeoFinance19 hours ago

I just claimed some fees 2 hours ago, volume started to pick up and aprs shot straight up

Imagine HBD was popular, and imagine it was popular on EVM

Then you can take HBD and pair it with USDC and put a tight range

lets say you put a range of $0.94- $1.06 that way even when HBD un pegs you can still make some fees

those who make a range of $0.99-$1.01 will make way more fees than the person above but only when the price is between 99 and 1.01

if the price of HBD goes beyond 1.01 or below 99 then the one with tight range will make nothing at all until the price goes back to their range

v2 lp doest allow for flexibility like this.

you provide an equal side of both coins and you are off to the races

v3 FULL RANGE is essentially a V2 position

the thing with v2 is your fees auto compound while v3 requires manual interactions

V4 is basically V3 but with the ability to include contracts for the LP, called "hooks"

That is why reason I don't mess with v4 when v3 is available. its annoying having to investigate and scan code or run it through AI to make sure there is nothing shady going on

some might think stable pairs are the safest

how can you go wrong pairing USDT and USDC, no impermanent loss right?

but if USDT dies, for some reason, you will be left with a bag of USDT instead of 50/50 usdt/usdc

I see some of my stuff is pumping so I gotta go address that now we will talk more about LP soon, maybe later today or tomorrow :)

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I've not gotten the hang of this LP versions yet. But this a good start. What are your thoughts on the auto-rebalancing feature some pools have?

it depends on your strategy. I see it as a good option for someone who wants to set it and forget it.

There are some people who need to click a lot of buttons to feel like they are being productive

Personally I like to do a bit of everything instead of always trying to do the best thing and risk being wrong

Oh right, that feeling is familiar lol. I think a gradual progression after that clicking and trying out everything will reveal which option is better, depending on the situation too. Not sure if volatile pairs are a better fit for this feature or not.

well the more volume the more fees you can earn. If no one is buying and selling in your range or in your pair then there are no fees to be earned

a lot of people like to play around with btc/eth and recently I saw a lot of volume with ETH/CRO

Its best to find a high volume pair where you wouldn't mind having either coin

try the CLP’s for LEO/LSTR/SURGE

SURGE is an interesting one because you know it will trade in a relatively tight range

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