After six months of using Uni V3 as an LP, I’d like to share some experiences and lessons learned.
Differences Between V3 and V2:V3 introduces concentrated liquidity, allowing for customizable price ranges, which enhances capital efficiency but also adds complexity.
My Strategy:- Choose mainstream trading pairs: ETH/USDC
- Price range: Current price ±15%
- Check once a week and adjust the range if necessary
- Fee tier: 0.3%
- Investment: $10,000
- Fee income: $1,850
- Impermanent loss: -$620
- Net profit: $1,230 (approximately 12.3%)
- Setting the range too narrow, resulting in zero earnings when the price moves out of range
- Not adjusting in time, missing out on a lot of fees
- Gas fees are expensive during bull markets, making it unprofitable for small investments
In summary: V3 is suitable for players who have time to monitor the market, while V2 is more convenient for those who prefer a hands-off approach.
