This Week in Uniswap v3 — 9/14/2023

Hey DeFi enthusiasts, welcome back to our weekly deep dive where we showcase three high-performing Uniswap v3 Concentrated Liquidity Pools. As always, we’re here to bring you the latest insights straight from the heart of DeFi.

The data in this blog series is for educational use only. Investing in liquidity pools comes with a risk of loss and the returns mentioned are not guaranteed. We assume no liability for any losses incurred. Always conduct your own research and consult with a financial advisor before making investment decisions. Invest wisely!

Weekly Developments

The cryptocurrency market has been relatively steady for the past 7 days, September 10th and 11th saw a decline & recovery which led to increased trading volume on September 11th and 12th.

Over the past 7 days, Uniswap volume & fees have seen a slight surge but then further retracement. This is most likely due to the price movements that occurred on September 10th and 11th. Assuming there are no further movements, daily volume should stay relatively close to ~$700m while daily fees should stay relatively close to ~$700k.

ETH/OX — HIGH RISK

• ETH & OX
• Ethereum Mainnet
• 1% Fee Tier

The ETH/OX pool has been performing substantially well over the past 7 days. If you had invested in the pool on September 7th, you would have seen a 3.4% increase in your principal assets and collected 23.09% in fees.

This is due to the substantial price movements for OX over the previous week. OX decreased 16.8% from its opening price to its weekly low, then increased 44.84% from its weekly low to its weekly high. Ultimately this volume is generating a lot of fees for liquidity providers.

A tight range of 40,000 to 65,000 OX per ETH would return roughly 334.6% annually, however, when you look at recent data (the previous 2 days), the ETH/OX pool is returning roughly 892.89% annually.

Amy, a client of BuildrWealth, has been running this ETH/OX liquidity pool for roughly 2.5 days and has been able to collect over $1,200 in fees while only incurring $260 of impermanent loss! This comes out to a 5.54% ROI in just 2.5 days from fees alone! Great job Amy!

ETH/ARB — MEDIUM RISK

• ETH & ARB
• Ethereum Mainnet
• 1% Fee Tier

While the ETH/ARB returns are not too great on the Arbitrum network, the returns on Ethereum Mainnet for ETH/ARB have been pretty great recently. This is most likely due to new volume & liquidity now that ARB has been bridged to Ethereum Mainnet.

ARB has seen an 11.7% decline over the past week, but ultimately, liquidity providers with strong conviction in ARB are winning. This is because they’re slowly increasing their exposure to ARB tokens by yield farming with Uniswap v3.

A semi-broad range of 1,800 to 2,250 is estimated to return roughly 104.95% annually. Now granted, this return will not last for a long time, but it’s a good opportunity to take advantage of in the short term!

Scott, a client of BuildrWealth has been providing liquidity for the ETH/ARB pair on Ethereum Mainnet for a little over a month. The pool referenced in the picture above has been open for 10 days. Meaning Scott has collected roughly $65.38 in fees from this pool over the past 7 days. That equates to a 1.75% ROI in 7 days strictly from fees!

ETH/USDC — LOW RISK

• ETH & USDC
• Ethereum Mainnet
• 0.05% Fee Tier

This list wouldn’t be complete without including Ethereum and USDC! Over the past week, the ETH/USDC pool has been relatively consistent!

Over the past 7 days, ETH is down 0.6%, meaning it’s open and closed at roughly the same price! The best part is there was a minor hiccup in price on September 11th which led to increased volume for liquidity providers!

While this ETH/USDC pool is not going to be super rewarding, getting a 20.42% APR is definitely better than a 3.5% APY for simply staking ETH! A range of 1,450 to 1,850 was used for this simulation because the market remains stagnant with major swings for ETH. This range allows for both bearish and bullish price action.

That Wraps It Up!

We hope you enjoyed this week's Uniswap v3 Liquidity Pool list! If you wish to dive further and find some pools that weren’t mentioned on this list, head over to the BuildrMetrics Pool Explorer! Furthermore, after you find a pool, you can calculate your returns directly through our site!

If you’re interested in achieving results like Amy & Scott, schedule a free strategy session with one of BuildrWealth’s team members!

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