Guillaume Lambert
@guil_lambert
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Founder and CEO at @Panoptic_xyz . Left-handed shortstop.
GEE-yohm LAMB-bear
Joined April 2010
Don't wanna be here?
Send us removal request.
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Pinned Tweet
My personal wishlist for DeFi protocols.
chains: all of ‘em
pricing: oracle-free
governance: minimized
protocol token: utilitarian
code: immutable & unupgradable
market making: automated
markets: permissionless
positions: semifungible
capital efficiency > 1
intents: onchain
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Providing liquidity in
@Uniswap
v3 can be 600x more capital efficient than on Uni v2.
However, most use a passive approach, re-adjust their position too frequently, or provide liquidity to low-yield pools.
Here are 10 tips to make your Uni v3 LPing 10x more efficient.
A 🧵:
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1K
"LPs in UniV3 are losing millions per year. Don’t LP unless you’re a pro!”
As a retail level LP, this hasn’t been my experience at all; once I realized LPing is like selling options, it got much easier to LP successfully.
Let’s use options to demystify IL/LVR/JIT/MEV
A 🧵
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Providing liquidity in Uniswap v3 generates a payoff that is mathematically identical to selling a put option.
Yet, most LPs do not use the tried-and-tested strategies used by options traders.
Here are 8 tips to help Uni v3 LPs behave more like successful options sellers 👇
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I've created a couple of flowcharts to help beginners deploy+manage their
@Uniswap
v3 liquidity position.
•Part 1: Choosing a size+range for a given holding timeline –eg. 1d, 1w, 1 mo, 1y?
•Part 2: Managing LP positions via daily checks –ie. when to exit position+take profits
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Here’s how to calculate the value of a delta-neutral Uni v3 LP position.
Why create delta-neutral positions?
In a nutshell, they’re one of the best way to manage risk: you get the same fees as a regular LP position but with ~half the exposure when the position is out-of-range.
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I just published "How to deploy delta-neutral liquidity in Uniswap — or why Euler Finance is a game changer for LPs"
1/8
In this post, I show how
@eulerfinance
allows LPs to deploy directionally strategic positions on Uniswap.
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I gave a talk at
@ETHBoston
2023 where I analyzed tokenomics of different protocols using dynamical systems theory.
TL; DR: ETH has the best tokenomics, bar none.
Why? ETH’s supply is both bounded (will never go to 0 or ∞) and stable (resilient against perturbations)
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1/ I just published "Pricing Uniswap v3 LP Positions: Towards a New Options Paradigm?"
I offhandedly mentioned in a previous tweet that I may have solved
@Uniswap
v3. This is my solution.
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A widely known empirical law in finance is the square root impact law: the impact on price of a trade of size Q is
∆P/P ≈ σ√(Q/dailyVolume)
Applying this to Uni v3, where price impact is precisely known, we can derive an explicit expression for the implied volatility σ.
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.
@Uniswap
v3 has been the uncontested champion of concentrated liquid AMMs for >1y.
Interesting approach by
@traderjoe_xyz
: they use a concentrated AMM with constant sum trading function between ticks, and they use a reactive fee that aims to reduce impermanent loss.
The wait is finally over….
Introducing: Liquidity Book 🌊📘
A next gen AMM protocol that is highly efficient, flexible and built for
#DeFi
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I just published: "Gamma transforms: How to hedge squeeth using Uni V3"
We demonstrate how 1-tick Uni v3 LP positions can perfectly hedge the gamma of positive convexity assets like squeeth.
Gamma transforms? squeeth? convexity?
Let's dig in 👇
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Hear me out: perpetual options on power perpetuals.
eg. this ETH-Squeeth strangle, made by shorting OSQTH on
@eulerfinance
and locking it with ETH on UniV3
This has the same risk as DAI/ETH, but using ETH/OSQTH means you also earn the short squeeth funding rate of 0.2%/day 👀
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Working on a way to visualize volatility in
@Uniswap
v3.
Here's the price+liquidity+fees for the first 10,000 transactions of:
-0.3% $Dai pool (left), volatility = 13%/day
-1% $RBN pool (right), volatility > 100%/day (!)
@ribbonfinance
was wild when it launched on 10/07
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Uniswap has already won the battle for liquidity on Ethereum.
If you’re launching a new AMM design that better rewards traders/LPs/Market-makers/treasuries/whatever, your new AMM has to literally be 10x better than Uni v3 to gain any DEX market share at this point.
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I just published "Designing a constant volatility AMM"
We describe how to construct an AMM that keeps volatility constant regardless of the price dynamics of the underlying.
How do we do this? Read the details below 👇
1/10
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The genius behind ETH’s tokenomics post-merge is that issuance is proportional to the square root of the total amount staked.
So if the economic activity (ie. amount burned) grows with circulating supply, then ETH’s supply will be BOUNDED and STABLE. And that will hold forever.
365 days since the merge!
→ 💧 700K ETH issued
→ 🔥 1M ETH burned
→ 🦇 300K ETH net supply reduction
Without the merge Ethereum would have consumed 0.2% of worldwide electricity and suffered 3.5M ETH of proof-of-work issuance.
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🚨 ALERT: Someone profited from LPing in Uni v3, defying CT's persistent narrative.
-> This
@Panoptic_xyz
butterfly created 24h ago is now always in-the-green, something we thought was impossible.
The laws of financial physics, if not of the whole universe, need to be revised.
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July 1st was my last day as an Assistant Professor of Applied Physics at Cornell.
Leaving Cornell and what was my dream job was a bittersweet moment for me. But I can comfort myself in recognizing that plans never work out and that life simply happens: what was barely
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The Uniswap v3 whitepaper has been released more than 2 years ago.
Fun fact: A Uni v3 LP position mirrors a short put payoff quite closely. See the derivation below 👇
Don't forget, Uni v3 LP positions have an "options-like" quality - manage them with that in mind!"
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Anyone complaining about the sideways markets of the past 3 months hasn't been LPing on Uni v3.
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WE HAVE RELEASED THE CODE FOR THE PANOPTIC SMART CONTRACTS!
it’s-not-quite-open-sourcing-the-code-because-it’s-technically-under-BUSL-that’s-why-we-say-we-released-the-code-please-understand-we-don’t-want-sushiOptic-until-2y-after-mainnet-launch-thanks!
3/4 To all developers, security researchers, code enthusiasts, and bug hunters: we encourage you to dive deep into our code. We'll be launching our bug bounty program soon! 🔍
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We're about halfway to the ETH/BTC flippening.
What's the probability that ETH will flippen BTC in 2022?
Luckily, we can calculate this using the ETH/BTC drift+volatility and results from the Black-Scholes model.
TL;DR
Prob(flippening within 1 year) = 93% 👀
A thread: 1/5
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It’s Friday night! Repeat after me:
Liquidity 👏 providing 👏 in👏 Uniswap 👏 v3 👏 is 👏 selling 👏put 👏 options 👏 and 👏 impermanent 👏 loss 👏 does 👏 not 👏 exists👏
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Here are 4 plots looking at returns in the
@Uniswap
v3 ETH-USDC pools
I define total returns (%) for all closed positions as: (amountCollectedUSD-amountDepositedUSD)/amountDepositedUSD
This is not IL. Contrary to IL, this is actually real and can be used on your tax return
👇
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Posted this today to answer
@dirac_sol
’s tweet: how to get the capital efficiency of Uniswap v3 = 1/(1 - (a/b)^(1/4))
+/- 25% → eff = 18x 😳
+/- 10% → eff = 42x 👀
+/- 2% → eff = 202x 🤯
Makes me wonder why vanilla x*y=k AMMs are still liquid 🤡
1/
🔥 I don't think the insane efficiency of
@Uniswap
v3 has sunk in yet. Just how efficient is it?
The equation for calculating the efficiency of a concentrated v3 position relative to providing to the entire v2 curve:
1/(1 - (a/b)^(1/4))
where a and b are your price bounds
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The FTX "hacker" dumped 5,475ETH on the open market and the UNI price in the Uni v3 30bps pool collapsed by close to 50% in a single transaction.
Interestingly, the price was arbed back to its initial level in less than 2mins.
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I’m extremely proud to announce that the whitepaper for “Panoptic: a perpetual, oracle-free options protocol” is now available on
DMs open if you’d like to learn more.
And make sure to follow
@Panoptic_xyz
for regular updates and hype videos👇
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I've previously done the value V(P) and the delta δ(P) of a Uni v3 LP position.
The next item: the gamma Γ(P) of a Uni v3 LP position! Details 👇
Key observation: the gamma can be huge (pin risk!!1!1) and is related to the Uni v3/v2 capital efficiency.
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Someone told me that
@Panoptic_xyz
is "just a pretty UI wrapper for Uniswap v3, how will that solve LPs losing money?"
NGL, the interface is pretty.
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.
@Panoptic_xyz
is a perpetual options protocol on the Ethereum blockchain.
Panoptic enables the trading of options on top of any asset pool in the
@Uniswap
v3 ecosystem in a trustless and permissionless manner.
What else do you want to know? AMA!
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My delta-neutral ETH-1INCH LP position had a healthy IV of ~75% IV until someone deposited ~50ETH worth of ATM liquidity across 5 ticks
Remember: IV is inversely proportional to the tick TVL
The IV is not juicy enough for me, so I closed this position for a 9.3% ROI in 21 days
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We’ll soon see a new type of trader emerge: the payoff engineer.
Fluent in the Greeks, more degen than perp traders, extracting profit from chaos, and always in the green 🫡
legend has it if u fuk around with this enough u will end up with a strategy that is always in the green
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After spending two full days at the
@Panoptic_xyz
booth at ETHDenver speaking with attendees, two insights stood out:
1. Almost everyone I’ve met had LP’d in Uni v2 and v3, but practically everyone wasn’t LPing in v3 anymore due to its complexity.
2. For the <5% that are still
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Q: What is the expected value of a Uniswap V3 LP position?
—
A: The payoff of a UniV3 LP position can be “split” into two components (Fig. 1)
1. A term that corresponds to the payoff of a put option at expiry (Fig. 2, red line)
2. A term called a range payoff that
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Let's try to clear some misconceptions about providing liquidity in Uniswap v3:
🟣Uni v3 LPs aren't making markets, they're selling cash-secured puts.
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I'm delighted to announce that I am the recipient of a UNI Grant!
This grant will allow me to focus 100% of my attention on Defi education, Uniswap v3, the
@yewbow_
analytics platform, and much more 🚀
Thanks
@uniswapgrants
,
@haydenzadams
, and the rest of the
@Uniswap
team!
gm 2022 - UGP is kicking off the year with our largest grant wave to date:
🦄16 grantees
💸>2M awarded
📈focus on education & onboarding
for more information on the grantees:
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Read my latest article: A Guide for Choosing Optimal
@Uniswap
V3 LP Positions, Part 1
In this post, I derive a (known) relationship relating the probability that the price of an asset will fall within a predefined range.
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I just published: On-chain Volatility and Uniswap v3
In this post, I show how to use the daily volumes and liquidity information directly from Uni v3 pools to extract the implied volatility of any asset traded on
@Uniswap
v3.
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I'll be speaking at
#ETHDenver
about my work on a groundbreaking options protocol based on
@Uniswap
:
•Perpetual options for any Uni V3 asset
•Permissionless long/short options
•Oracle-less BS pricing
•Built-in margining
Tune in on Wed to learn more!
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This tweet from one year ago: I was working on my own, slowly grinding my way through the math behind
@Uniswap
v3
What did I solve?
Uniswap v3 liquidity providing is a primitive for an options protocol
LP token = option contract
Paremium = fees collected
What’s next? 👇
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It’s becoming increasingly clear to me that the main reason why Uniswap LPs are losing money is bc it’s a one-sided market.
Accurate pricing tends to require two-sided markets. Allowing the shorting of LP positions would likely increase LP revenues to match the risk undertaken.
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Uniswap is once again innovating and reshaping the DeFi landscape. Cannot be more excited to build on top of Uni v4!
This is DeFi 3.0
- protocols as public goods
- open infrastructure
- composability and interconnectedness
- "app-layer" on top of DeFi protocols
- 🪝hooks!
1/ Today, we’re announcing our vision for Uniswap v4 🦄
We see Uniswap as core financial infrastructure & think it should be built in public with space for community feedback and contribution.
An early implementation of the code can be found here:
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The future of DeFi is oracle-free.
-
@ajnafi
and
@blur_io
are making oracle-free lending possible
-
@Panoptic_xyz
is of course synonymous with oracle-free options
Who’s building oracle-free perps or stablecoins? What other economic infrastructure needs to be “de-oracled”?
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Now, one year later, I found an ideal partner in
@cryptojesperk
, have been worked full time to develop the 0-to-1 options protocol
@Panoptic_xyz
, finished the code this week and preparing for our 1st audit, looking to launch the first defi-native options protocol in Q1 2023
#LFG
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#ResearchBites
from the
@Panoptic_xyz
team.
============
One of the core assumptions behind financial models is that prices follow a geometric brownian motion (GBM) --eg. Black-Scholes.
Does the price of the most traded asset in Uniswap v3 also follow a GBM?
Let's find out! 👇
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I consistently go back to the articles I wrote in 2021 whenever I need a refresher on the math behind Uni v3.
I stumbled on this beautiful gif again this morning. If that doesn't convince you that the LP side Uni v3 is an options clearinghouse, I don't know what will.
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I’ve been a very active Uni v3 LP for nearly 3 years and I am genuinely puzzled by the focus on LVR and the ongoing quest to find a solution for it.
LPing is difficult, and fees may be too low to compensate for the risks LPs are taking, but LVR is not the culprit in any way.
So far known LVR solutions are:
-
@CoWSwap
FM-AMM batch swaps
-
@ArrakisFinance
Diamond top-of-block repricing
-
@SorellaLabs
Auctioning top-of-block repricing
Of these I’m liking cowswap the most. Batch swapping includes arbers cleanly, fully eliminates LVR, affects UX the
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LPing in
@Uniswap
v3 can be challenging and is certainly not for everyone → what if there was a way to be a lazy LP in Uni v3 but still reap the benefits of active LPing?
Here's a sneak peek at the role played by LPs in Panoptic, a perpetual options protocol based on Uni v3:
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Panoptic is (finally) coming 🔜 !
If your protocol, or one in your portfolio, is launching an ERC20 –be it a gov token, tokenized assets, RWAs, meme coin– and want to optimize its liquidity distribution in Uniswap, please reach out: we can help you!
Tg/DM:
@guil_lambert
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Tooting my own horn here a little bit: Uniswap v3 is the perfect options protocol, not sure if Dan knows this yet.
Trading fees could even be 1bps, LPs’ yield will soon come exclusively from the lending of LP positions.
LPing, not trading, is the primary use case for Uni v3.
Uniswap v3 is a true hybrid—as much CLOB as it is AMM
Concentrated liquidity evolved from the AMM direction, but it could have evolved from a CLOB and we’ll probably see that happen too
Like how nature keeps trying to evolve a crab
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MRK has been on a tear lately, but it's IV on UniV3 is also the highest it's been in 2y (81%)
I set up a straddle/delta-neutral LP position 19 days ago. Happy to close this position for 7.5% return, all the while still in the green even as my upperPrice is about to get breached
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.
@Panoptic_xyz
is a perpetual, oracle-free options protocol
-Perpetual: Panoptic options never expire. This completely eliminates the need to roll options
-Oracle-free: This one makes
@Panoptic_xyz
much more resilient to attacks compared to other protocols.
Here's why👇
1/
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#ResearchBites
from the
@Panoptic_xyz
team.
=======
Analyses of LP returns in Uni v3 typically focus on the most liquid pools like ETH-USDC where most of the trading activity is CEX/DEX arbitrage.
What are the LP returns in a pair which has no CEX analog?
Let's find out!
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Even though couldn't be in Lisbon this week, I still managed to finish working on the code for v1 of my forks of
@Uniswap
's /interface and /v3-info github repo
They're currently deployed on IPFS and accessible on and
1/ A thread:
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There is a huge need in DeFi for the following products, who's building this?
1) A way to enact active/passive LP separation in Uniswap
2) Create a restaking protocol for Uni v3 LP tokens
3) Enable trading of leveraged perps and call options on ALL the memecoins
4) Box spread
Whenever someone on Twitter from Paradigm or A16z asks “who’s building this?” what they are trying to say is that actually they are building it, and they want to let you *personally* know that they are going to build it better than you because you are poor and they are not
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A protocol with excess cash locks their own token from treasury in a Uni v3 pool in +/-20% range.
– Price 📉 = permissionless stock buyback
–Price 📈= permissionless stock issuance
Added benefits: more liquidy for all swaps, market-driven price discovery, happy tokenholders
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1. Know the risks
Providing liquidity has potentially unlimited losses and capped profitability.
LPing can generate income, but returns *will* underperform simply holding when the asset appreciates.
The key is to understand that LPing = selling options:
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Liquidity incentives are broken in Uni v3: 1-tick positions perform extremely well, but only if you're an ultra-active whale
I forked staker contract (<10 lines diff) to require that staked positions have a minimum width to address the 1-tick LM issues:
4/ We identified five other large accounts that replicated the onetickdao.eth strategy, all together they claimed over 50% of the 10m RBN rewards allocated to the program.
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Just noticed that there's a lot of ineffectually deployed capital in Uni v3.
👉Close to ¾ of all liquidity will NOT be in range for the next 14d in the USDC- and DAI-ETH pools.
The dark blue bars correspond the [900, 1300] price range, a ~95% expected move (2-sigma) @ 14d
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To be clear: UniV3 LPs are indeed losing money, but those losses are mostly occurring in the largest, most liquid pools (ETH-USDC)
Why?
Simply put: LPs don’t get compensated enough for the risk they take on bc implied volatility is much lower than realized in these pools.
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Flash loans are the spontaneous electron-positron pair creation of DeFi.
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Uni v3 is extremely capital efficient, but LPs can do muuuuch better with the right tools.
-eg. only 80M out of the 340M of TVL in that ETH-USDC pool is within the 14 days 2 std. dev. expected move.
So ~75% of the liquidity will remain out-of-range after 14 days with 95% prob.
Today Uniswap did 41x the volume of their nearest competitor with 8.6x the capital utilization. Do whatever you want with that information.
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@0xfoobar
For those seeking an explanation: liquidity in a Uni v3 pool is not uniform.
As people dump their token, the price moves in a region with very low liquidity, which increases the price impact of each trade (hence the huge candles).
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The first step in vanquishing impermanent loss in Uniswap v3 is to understand that providing liquidity == selling put options.
The second step is to use that knowledge to rein in your deltas:
I just published "How to deploy delta-neutral liquidity in Uniswap — or why Euler Finance is a game changer for LPs"
1/8
In this post, I show how
@eulerfinance
allows LPs to deploy directionally strategic positions on Uniswap.
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It turns out taking fees into account (shocking concept, I know!) generates positive LP returns in Uniswap.
It is time to end the fearmongering that is impermanent loss/divergence loss/loss-vs-rebalancing whose sole purpose is to discourage retail LPs.
Always trust the data 👇
3/
So what’s wrong with this query?
For one, it doesn’t account for LP fees! When we factor in LP fees, we find that ETH/USDC LPs have generated 2.5x more fees for LPs than the value lost via markout.
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Imagine this: as an LP in Uniswap, you literally cannot lose any funds even if price drops 4% in <10mins (like it did last night).
How: trade 🦋's
Defined-risk trades like butterflies are ideal for risk management & may become the most traded strategy on
@Panoptic_xyz
--
Set
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Deploying LP positions in Uniswap is like selling options.
I hold this truth to be self-evident.
Understanding this is key to LP success. DM me if this hasn’t sunk in yet, especially if you are a protocol, token deployer, or anyone who has to deal with token liquidity.
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BONUS: use the right tools!
I built
@yewbow_
( + ) with support from the
@uniswapgrants
program to help the community to be better LPs.
I mainly built those interfaces to help *my* LP trading, so I use and upgrade them regularly.
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AMMs are clearly two distinct products: i) a venue to swap tokens and ii) a means to provide liquidity
While Uniswap has nailed the swap UX, the LPs UX is far from being as polished
What’s missing in your opinion?
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After 43 days, my deposit was finally processed (!) and my validator is now online! Running Nethermind-Nimbus to help client diversity.
Thanks to
@SomerEsat
for publishing those fantastic guides and
@kassandraETH
for convincing me to make the jump to run a solo validator!
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The basic idea behind the LLAMMA stablecoin mechanism proposed by
@CurveFinance
’
@newmichwill
.
Looks freakishly similar to a long call option payoff!
Reducing risks isn’t free: what’s the extrinsic cost of this unlimited-upside, limited-downside LP position?
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A few thoughts about the 1bps pool:
Trading fees are still low despite 337k in volume (only $33.74!). That's 0.1% annualized APY...
This pool needs a lot more TVL to sustainably generate revenues that are on par with the 5, 30, 100bps pools.
How much more? 1/8
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A robust options market is crucial for maintaining stable and healthy price dynamics.
How?
1. Hedging: using options to hedge against price volatility reduces the likelihood of panic selling during downturns.
2. Price Discovery: The pricing of options factors in volatility and
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A short thread about selling options on the blockchain.
You may think Decentralized Options Vaults are neat idea, but options trading is NOT a “set it and forget it” strategy.
I'll illustrate this using a TradFi example: an IWM strangle I closed after 77 days of trading.
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The problem that any protocol faces in order to gain traction is how to attract liquidity.
This has proven fatal for many DeFi options protocols, where a lack of liquidity hinders trade and market making (in a very chicken-and-egg way).
How does
@Panoptic_xyz
solve this?
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A tomahawk steak on New Year’s Eve. A gift from my brother, straight from his farm.
One of the best meal I’ve had this year. Happy new year!
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Let’s analyze the tokenomics of the US dollar, shall we?
ISSUANCE: US dollars are issued through staking -ie buying tbills
BURN: dollars are burnt through economic activity -ie paying taxes (!)
Money supply: it goes to infinity exponentially & exp growth is the equilibrium 🙃
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I was one of the co-proposer of the
@Uniswap
pilot project to activate the fee switch for three ETH-stablecoin pools
My views have evolved since then, and I no longer believe this is the most effective use for the fee switch
Here's my new proposal:
1/
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2025: Metamask, not Uniswap, must enforce KYC under DCCPA
2032: Wallets reach FAANG-level dominance
2033: RPC nodes control access, Web3 becomes Web4
2042: Vitalik’s daughter invents quantum-zk-AI tech, new era of decentralization is called Web5
2056: Web5->Web6
Rinse+repeat
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Idea: be an Uber driver during ETHDenver instead of actually attending ETHDenver.
Judging by the amount of alpha my team and I inadvertently leaked during those UberXL rides, there’s no way drivers don’t know more than even the most well-connected insiders.
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I just published: A Guide for Choosing Optimal Uniswap V3 LP Positions, Part 2.
Uni v3 LPs have to balance capital efficiency and time spent ITM. Holding for a long time or deploying to wider ranges lowers returns, a cost we call radical liquidity drag
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In your opinion, which DeFi protocol has the best documentation?
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The current Uniswap UX for LPs is at a weird intersection: too complex for passive LPs and yet not feature rich enough for active LPs.
In my view, we need a separate protocol for each role —ie. we need active-passive LP separation.
Hasn’t this been tried before? Not quite👇
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I am happy to see that the ideas I’ve been pushing since mid-2021 about Uni v3+options are getting traction outside my reader base!
Remember: LPing is like selling options, so LP positions should be managed as such. Expect
@Panoptic_xyz
to make LP risk management 100x easier
LPs of AMM can never be fully compensated by the trading fee (tx fee), which is a compensation only for LPs' cost of capital; LPs suffer from GAMMA RISKS as well.
This 🧵 will dissect the risk profile of being LPs of AMM, especially important to LPs of
@uniswap
v3!
👇👇👇
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We are trying to solve these problems with
@Panoptic_xyz
. It’s been a long process but we’re finally close to launching. we’re very proud of the end result ☺️
Please give us a follow and look for upcoming announcements about our gated launch!
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8. Tracking Profit & Loss
I recommend using to track your position’s PnL.
The simple visual interface enables the user to quickly see whether their position is in the red (loss) or in the green (profit).
It also shows the range + historical price.
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There are a lot of market parameters, not sure if each parameter set will be its own pool. While that could lead to liquidity fragmentation, I like that it gives more choices to LPs.
Overall I’m glad to see innovation in the AMM space, will keep a close eye on Liquidity Book.
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We’ll not only need to trade ~all tokenized assets, but also options+perps on all of them too!
No way trading those option will require an oracle feeeed or enough market maker interest
We need something oracle-free that leverages liquidity of the largest AMM 🦄
Something… 🟣
once we tokenize ~everything we'll need a place to trade them all
no way professional market makers or traditional exchanges can keep up
we need something automated and self serve
something... decentralized🦄
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The options protocol with the largest TVL on Ethereum is, by far, Uniswap v3.
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6. Choosing a range
The range should be chosen as a proxy for “time in the position”.
The maths are a bit advanced, but a good heuristic is that the range should match the rebalancing frequency:
• 1 day → ±7%
• 1 week → ±17%
• 1 month → ±40%
I've created a couple of flowcharts to help beginners deploy+manage their
@Uniswap
v3 liquidity position.
•Part 1: Choosing a size+range for a given holding timeline –eg. 1d, 1w, 1 mo, 1y?
•Part 2: Managing LP positions via daily checks –ie. when to exit position+take profits
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It’s incredible the amount of work one can accomplish by simply having a few uninterrupted hours in a day without any meetings or distractions.
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It always warms my heart when I’m on a call w/ someone & they mention they’ve been long-time followers/benefactor of my work on UniV3 LPing 😊
I can’t imagine how these calls would go if I were an LVR influencer and my message was: you’re too stupid to LP, leave it to the pros…
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The price+liquidity+fees for the first 10,000 transactions of the ETH-ENS-1%
@Uniswap
pool.
@ensdomains
@futurealisha
@BrantlyMillegan
@nicksdjohnson
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2. Choosing an asset pair
Choose an asset pair that has enough 1) volume, 2) liquidity, and 3) legitimacy.
One way to evaluate 1) & 2) is to look at the 24h fees and TVL of a pool in
Choose any asset with >$1M TVL and >$1k in daily fee
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Using market making metrics to evaluate the performance of AMMs is highly misguided at best and pure FUD at worst.
Market making has been made irrelevant by AMMs, the relevance market makers in AMMs is the same as that of a horse in a 640 horsepower Porsche 911 Turbo S.
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