Choosing The Best Range To Maximize LP Returns (Flow Chart)
Demystifying Range Selection Through Simple Steps
Having previously covered the concepts as well as practical effects of position range choices on LP returns, this post summarizes all the learnings into an easily accessible flow chart. Through progressively stepping through this process flow, LPs can gain a better appreciation of each of the factors that goes into determining the best position range based on their personal preferences.
If in doubt, readers can always refer back to Part 1 to view the trading fee mechanism as well as the various decision factors and their corresponding risks. Additionally, the multiple real-world examples in Part 2 should enable readers to fine-tune their selected position ranges based on their risk profile.
Step-by-step Guide To Choosing The Best Range
Note: You can access the interactive version of the guide on the KyberSwap Blog.
“ Disclaimer: The original post can be found on the KyberSwap blog and has been reposted here purely for educational purposes. As a technical writer with KyberSwap, our end goal is to empower users by increasing their awareness of DeFi ecosystem,mechanisms and value flows.”
