Estimate Uniswap v3 LP Fee Returns Through BuildrMetrics.com

DeFi is a world of uncertainty, especially regarding yields derived from a real revenue stream (not paid out in reward tokens). While some platforms like Trader Joe, PancakeSwap, and Camelot display an estimated yield for liquidity pools, Uniswap v3 does not. This is a big issue, considering Uniswap is the largest decentralized exchange by market cap and is fully based on a real-yield system.

This is where BuildrMetrics comes into play, BuildrMetrics is an all-in-one Uniswap v3 tool to estimate yields, manage your pools, and backtest strategies. BuildrMetrics, which falls under the BuildrWealth umbrella (a company dedicated to helping Liquidity Providers in DeFi), allows you to estimate your potential Uniswap v3 return after selecting a range. This allows you to determine what your Uniswap v3 APR will be.

How To Use BuildrMetrics Uniswap v3 APR Calculator

BuildrMetrics is a relatively simple tool; the best part is it’s 100% free with no ads.

When landing on the homepage of BuildrMetrics Uniswap v3 Fee Calculator, you’ll have the option to choose a network, select a pair, and select a fee tier. These are all crucial steps to determining which Uniswap v3 Liquidity Pool you will be using for your simulations.

After selecting a pair, you’ll be greeted with a sleek interface that displays the most important metrics when it comes to providing liquidity on Uniswap v3.

At the top, you’ll see some information about the Uniswap Liquidity Pool, including the two tokens it’s comprised of, the fee tier, and the network. You can open the pool on the official Uniswap Info page and have the option to ‘Toggle Pair’ which switches the price quote or ‘Change Pool’ to select a different pool. Alternatively, if you wish to automate your position, you can head over to our partner Aperture, which allows you to create a composable automation system for your Uniswap v3 Liquidity Pool.

Below this information, you’ll find TVL and volume metrics (these are calculated using your Calculation Range).

The next section is arguably the most important section. This is where you’ll be able to analyze your potential return, enter your deposit amount & find out how much of each asset you need, and select your range.

While the Estimated Fees & Deposit Amount sections are self-explanatory, let’s dive deeper into the Liquidity Price Range section.

The Most Active Price Assumption is equivalent to the current price of the pool, if you wish to test a strategy where you enter at a different price other than the current pool price, you can adjust this, otherwise, it’s best to leave it as is.

The Min Price & Max Price for the Uniswap v3 Liquidity Pool are equivalent to your selected range. As you probably know, the more narrow your range is, the higher the yield you will achieve, but at the same time, the higher risk you are taking on.

The Calculation Range section determines how many days the Uniswap v3 Calculator will factor in when estimating your return. For example, if you select 30 days, the Uniswap v3 Tool will analyze 30 days' worth of volume, fees collected, liquidity distribution, and total value locked to estimate your yield. Whereas if you choose 7 days, it will only analyze 7 days. This feature helps you determine how the short-term vs long-term yield is. A liquidity pool might have a high long-term yield but a low short-term yield. This means the fees collected recently have been lower than the pool’s TVL.

Lastly, you have the option to calculate impermanent loss for liquidity pools at specific prices, this feature helps you plan how you’re going to manage your Uniswap v3 Liquidity Pool.

Moving on to the next section, you are able to view the current distribution of liquidity and the correlation chart of the pool (price chart).

The Liquidity Distribution chart allows you to analyze where other Uniswap Liquidity Providers are placing their liquidity to help you determine where you might want to place your liquidity.

The Correlation (Price Chart) helps you analyze the recent prices of the Liquidity Pool to help you determine where to set your Min Price and Max Price for maximum optimization.

The Position Breakdown by Token section allows you to view how your liquidity pool will function over certain price points. This will factor in your Deposit Amount, Min Price, and Max Price to help you determine how much of each token you will have at certain price points for optimized planning.

Similarly, the Position Breakdown by Value section will display the value of your assets over certain price points.

The Asset Value chart is similar to the Position Breakdown by Value section, but in this case, it displays the overall value of your pool.

Additionally, we include metrics that help you analyze TVL and volume over time to determine if a pool is consistent with its volume, or fluctuating.

If you’re unsure what to set your Uniswap v3 Concentrated Liquidity Pool range to, you can view the performance of different positions from other Uniswap Liquidity Providers. This will display their ROI percentage, Fee APR, Liquidity deposits, Strategy when it comes to the timeframe of the pool, Price Range, and the age of their pool.

Not Sure What Pool You Should Simulate with BuildrMetrics?

By heading to the Top Uniswap v3 Pools section, you can view the top liquidity pools & favorite Uniswap v3 pools to come back to them.

Our tool will display a few important metrics to analyze before calculating returns. These include Estimated Fees, Risk level, Price Volatility, TVL, Fees, Volume, and more! You can also head directly into calculating these Liquidity Pool returns by hitting Calculate!

Well, That’s It!

Our goal at BuildrMetrics is to be the ONLY tool you need for Uniswap v3, and hopefully other decentralized exchanges in the future. We plan to add many different features in the future so make sure to stay tuned & follow our Twitter page. We can’t wait to hear what Uniswap v3 Strategies you come up with!