Uniswap v3: How to lose 10% from your deposit? We showed yo | DeFi [L]Earn. Strategies.

Uniswap v3: How to lose 10% from your deposit?

We showed you many successful cases on Uni v3, but now let's check losing positions. In the picture above, you see wETH/USDC position.

Deposit: $2800
Earned: $160
Loss: $544
Position age: 50 days

Mistakes:
1. Range is too wide.
- Wider range means you could accrue more IL (lose more funds).
- Also, it means that you will earn less APY.

2. Didn’t move the range.
When you use the strategy of a wide range, you should move the limit range once the loss of investments is ~0.5%.

3. Didn’t compound fees.
Always use auto compounds for long-term strategies. It will help you to boost your APY 2/3 times.

>> Here is a cool REKT article about losing money on UNI v3 (Liquidity providing). <<

Don’t be one of these people. DYOR or come to the master class.

Leave a reaction if you want more posts like this one