8 posts tagged with "Uniswap"

🌊 Uniswap v3's business license expired on April 1st, sparking a massive wave of interest in Concentrated Liquidity Market Makers (CLMM).

Here's 8 reasons why concentrated liquidity (and Panoptic!) is the FUTURE of DeFi 🛥️🚀!

HODL vs. LP vs. Calls — which one's best?

• ⬇️❗HODL downside is substantial (can go to 0)
• 🧢 LP upside is capped on Uni V3 — token goes up, you now hold the other token
• 🚫🧢 Call options have unlimited upside, capped downside — but pay premia

Incoming backtest 👇

Imagine a market that only lets you sell assets, never buy...Could you be profitable?

That market isn't imaginary. That market is...Uniswap Liquidity Providing!

LPing = selling options, but what if users could SHORT LP tokens and effectively BUY options...?

Why are some pools good 🐶 and other pools bad 😈?

The answer comes from breaking down LP profits into:

• Price changes 📈
• Fees collected 🎟️

By comparing LPs to options, we discover parallel insights — let's explore!

We simulated LP performance for 21 popular Uni V3 pools (high TVL & volume). Results were surprising: LPs can be profitable! 📢

• 💰 Which pools made the most?
• 📏 Are narrow or wide ranges better?

Find out 👇

We analyzed simulated LP performance on ETH-USDC 0.3% pool. Results were surprising: the optimal width was wider than expected! 📢

• What's the optimal width for max returns?
• How does that change for 🐂 vs 🐻 markets?

Find out 👇

How do you LP on Uni v3 with a ±% range? E.g. if you wanted ±30% should you do:

• $\text{Lower: } P \cdot 70\%$
• $\text{Upper: } P \cdot 130\%$

or

• $\text{Lower: } \frac{P}{1.3}$
• $\text{Upper: } P \cdot 1.3$

Let's find out! 👇

One of the core assumptions behind financial models is that prices follow a geometric brownian motion (GBM) — e.g. Black-Scholes. Does the price of the most traded asset in Uniswap v3 also follow a GBM? Let's find out! 👇