This Week in Uniswap v3–9/23/2023

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 is up 0.2% whereas ETH is down 2.7%. Since most altcoins tend to follow ETH, a lot of popular altcoins such as MATIC, UNI, AVAX, QNT, and LDO are also in the red for the past 7 days.

Over the past 7 days, Uniswap trading volume & fees have seen a drastic increase. On September 16th (the start of the 7-day period), Uniswap had $323m in trading volume and $531k in fees. Just 2 days later, on September 18th, Uniswap had $816m in trading volume and $881k in fees. Since the 18th, Uniswap trading volume and fees have retraced back to its September 16th and 17th levels.

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

While this pool is doing very well in terms of its APR, this is mainly due to the increased selling pressure for RLB over the past 7 days. However, this pool may suit your investor profile if you wish to accumulate RLB via a DCA strategy while collecting fees.

RLB has lost 23.5% of its value over the past 7 days, but it seems as if this trend is coming to a halt.

A semi-broad range of 9,000 to 18,500 RLB per ETH is estimated to return roughly 247.65% annually. Putting this in perspective, if the ETH/RLB pool lived up to this return, on a $1,000 deposit you would be earning $6.78 per day.

ETH/LINK — MEDIUM RISK

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

Chainlink is a blockchain oracle platform. They provide oracles for some of the largest DeFi protocols & platforms. By investing in an ETH/LINK pool, you’re increasing your exposure to both ETH/LINK, which would allow for exponential returns in the next bull market.

A semi-tight range of 190 to 250 LINK per ETH is estimated to return roughly 73.16% annually. If you were to deposit into this ETH/LINK liquidity pool for 6 months, and the APR lived up to this estimation, you would increase your holdings by 36.58%.

This means, that if LINK were to 10x from its current price, you would reap a 1,358% return (instead of 1,000%).

WBTC/USDC — LOW RISK

• WBTC & USDC
• Ethereum Mainnet
• 0.3% Fee Tier

We all know that BTC is the leader of the entire cryptocurrency market. The only issue is, that the Bitcoin network is not a smart contract network. This means that we can’t provide liquidity for BTC directly. However, there are ERC20 versions of BTC, like WBTC or BTCB. These are known as Bitcoin stablecoins. They are backed 1:1 by actual BTC in reserves.

A relatively broad range of 25,000 to 28,500 USDC per WBTC (basically USD per BTC) is estimated to reap a whopping 30.33% return annually. This is an amazing return for a very blue-chip asset that you can usually only get a 2–3% annual return on (if you simply lend your BTC).

If you’re bullish on BTC, and think the market is going to stay relatively stagnant for the next few months, this pool should fit your investor profile.

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!