Inside the Pool #4

Using our software, a vast number of strategies has been assessed. We perform in-deep investigation of the following pools.

Pools we perform in-deep investigation:

• USDC/wETH
• wBTC/USDC
• wBTC/wETH

Result of the strategies’ assessment

The main results of the strategy assessment can be summarized as follows:

• Frequent position rebalancing leads to severe impermanent loss[8], so most profits are generated when a strategy minimizes the number of rebalancing.
• A sizeable amount of profits can be generated even when the price is not inside the position for a significant part of the time.
• Very narrow positions generate high amounts of commissions while the price is in the position but lead to even more impermanent losses, so they do not maximize the profits.
• Very frequently, a very broad position without active rebalancing is the best strategy.