If you’ve tried using Uniswap V3 (or any of its other forks), you’ll probably know how much of your mental time and effort it takes, to actively monitor your positions + adjust your ranges so you can consistently get good APY.
Or maybe Uniswap V3 with its multiple fee choices for pools of the same tokens, the price range selections etc. is just a tad too complicated to grasp.
Or maybe.. whatever was written above doesn’t even ring a bell.
Here you go. A 4-pointer dummies guide to Uniswap V3
Let’s say that you are a liquidity provider and you want to provide liquidity for the ETH/USDC pair. You could simply deposit your ETH and USDC into a standard liquidity pool. However, with Uniswap V3, you can choose to concentrate your liquidity within a predefined price range.
- You have to set the price range of the pool you want to provide liquidity for, eg. setting $1500-$1700 when ETH-USDC price is at $1600
- Whenever the price of ETH trades between the set range, you’ll earn swap fees
- However, if the price moves out of range, you’ll earn 0 fees.
- so assuming that you’re not monitoring for a few days, and it moves out of range, you’re basically not earning anything in that period - What’s worse, the Impermanent Loss will be larger the further your liquidity provided goes out of range
With so much to worry and monitor, why provide liquidity to Uniswap V3 then, you ask?
Well, you can gain a much more higher APY if you set your ranges really tight, just around where the price is currently trading at, ie concentrating liquidity. Though of course, that also increases the risks mentioned above, with a higher chance of going out of range, higher IL etc.
Concentrated Liquidity Management.. Automated.
That’s what our latest product is trying to solve. ACLM.
Automated Concentrated Liquidity Management
Aggressive Concentrated Liquidity Manager
ACryptoS Concentrated Liquidity Manager
Aggressive Chad Liquidity Manager (someone else said that, not us😉)
A new liquidity management system, uniquely developed at ACryptoS, built on top of Uniswap V3 (& some other forks eg. Pancakeswap V3, Biswap V3).
Benefits:
- fully automated. Once you’ve deposited, no further actions needed.
- zap in via any one token in the liquidity pool
- APY is sustainable (from swap fees)
ACryptoS — BUIDLing Advanced Strategies since 2020
There are of course, some other Liquidity Managers out there. Statistics and historical performance show that our ACLM has been performing quite well in comparison.
ACryptoS’ ACLM uses a variety of innovative strategies to manage liquidity and risks, targeting to achieve the highest, yet sustainable yields possible.
- Chainlink Automation: to automate the whole process of rebalancing the Liquidity Manager vaults. No manual rebalancing required from users.
- Aggressive strategies and tight ranges: achieving a much higher APY than other liquidity managers.
- Zap in with just one token: This makes it easy for users to get started with ACLM without having to calculate ratios and providing two different tokens.
- Fully automated vaults: The vaults are all fully automated. Once you have deposited, there is no further action required.
Do take note though that we are still experimenting heavily, testing out different strategies and parameters, and developing new strategies and features as well. (Hence the “TEST” label on our ACLM vaults. DYOR)
The below graph being one of the features we developed, to help Uniswap V3 users easily visualize where the liquidity is currently spread out at.
- grey bars show where all the liquidity is at
- red line shows the current trading price
- blue bar shows the active liquidity our ACLM is currently hosting
Check out the ACLM yields yourself at https://app.acryptos.com/aclm/.
Sustainable APY from swap fees.
Further Reading:
Some quick tweet threads on how we developed these strategies over time
- Adventures in Aggressive Conc. Liquidity Management
- Data Visualization on Uniswap V3 CL Vaults
- High APY on Biswap stablecoin pairs
- Chainlink Automation
- 6k%+ on MATIC-USDC pair?
Detailed docs on how our ACLM strategies work, and the risks involved:
https://docs.acryptos.com/products/uniswap-v3-vaults
For partner protocols:
Reach out to us for a collab. We can build an ACLM vault for your LP, bringing to it much deeper liquidity, and hence much better swap rates for your token.
