This Week in Uniswap v3–10/2/2023

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

Over the past 7 days, BTC & ETH are up 6.4% and 6.1% respectively. Additionally, altcoins like SOL, MATIC, LINK, and AVAX are up 22.6%, 7.8%, 3%, and 7% respectively.

One of the main reasons for this rise is due to macroeconomic conditions in the United States starting to shape out.

Uniswap v3 trading volume and fees have been relatively consistent over the past 7 days, although trading volume has seen 9.8% growth while fees have seen 12.3% growth. With numbers like these, Uniswap is expected to consistently cross the $1b trading volume threshold by early next year.

We found all of the following Uniswap v3 Liquidity pools using our tool, BuildrMetrics. BuildrMetrics is an all-in-one Uniswap v3 Liquidity Provider solution. It allows you to find, estimate, and track top Uniswap v3 Concentrated Liquidity Pools.

ETH/RLB — HIGH RISK

• ETH & RLB
• Ethereum Mainnet
• 0.3% Fee Tier

The ETH/RLB pool was featured in our list last week! However, the returns for this pool are far too good to pass up. Additionally, there have been some developments for RLB token.

Referencing the above X post, Rollbit generated $37.7m in revenue in September alone! The best part, Rollbit was able to reduce the RLB supply by 1.265% by purchasing $5.25m of RLB and burning it (taking it out of circulation)!

Obviously, RLB traders have had a good reaction to this news, bulls have singlehandedly taken RLB from being down ~50% in the past 30 days, to only being down ~20% in the past 30 days. Additionally, RLB is up ~26% in the past 7 days!

All of this up-down volume is really good for liquidity providers that have conviction in RLB token. A range of 8,400–17,000 RLB per ETH is suggested, this range encapsulates the entire 30d correlation chart, with additional room to move. This is estimated to return 185% APR.

On highly volatile pairs like ETH/RLB it is important to adapt your range to fit market conditions and volatility.

ETH/SOL — MEDIUM RISK

• ETH & SOL
• Ethereum Mainnet
• 0.3% Fee Tier

Solana Network is an Ethereum Network competitor. Matter of fact, Solana saw substantial activity last bull market and was a go-to chain for those who were looking for cheap transaction fees and a fast network to execute transactions on. There are also a good amount of decentralized applications and active users on the Solana Network.

Over the past 7 days, SOL, the gas token of Solana Network, has seen a 23.2% incline. This is most likely due to DeFi starting to heat up and macroeconomics starting to shape out.

While this Uniswap v3 Pool only has a $400k TVL and a consistent daily volume of $120k, the return is definitely appealing for those who are looking to deploy ~$10k.

With a range of 59.5–85 SOL per ETH, this pool is estimated to yield 124.75% APR. The main issue that arises here is fee dilution, if multiple investors choose to invest a large amount of capital (even around $50k-$100k), this APR will get diluted rather quickly (due to TVL increase and stagnant volume).

ETH/USDC — LOW RISK

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

Due to an increase in active DeFi wallets & trading volume, ETH/USDC returns on Ethereum Mainnet have seen a sudden rise, thus allowing liquidity providers to capture a high return, while still remaining low risk.

With a range of 1,590–1,830 USDC per ETH, this range encapsulates 90% of the 30d correlation chart for this pair. It’s expected to return 41.94% APR while remaining low risk when it comes to the assets being used. Additionally, since this range is relatively broad, it slows impermanent loss down as well, giving you time to rebalance your pool.

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 the BuildrWealth team implementing our 5-Step Copy & Paste process into your DeFi portfolio, schedule a free strategy session with one of BuildrWealth’s team members!

‍

‍