what's the easiest way to deploy liquidity on base in univ3 in a way that minimizes risk of impermanent loss?
The blue god of Base is asking peasants this question?
Play around with the pool you're interested in on Poolfish.xyz. (My site). Here's a Base pool https://poolfish.xyz/calculators/uniswap?network=base&token0=0x4200000000000000000000000000000000000006&token1=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913&feeTier=500&min=0.00036487906291022876&max=0.00047126186799456663
Opting for tighter $DEGEN ranges around the current price can help earn more fees and reduce impermanent loss. However be cautious as your position might become inactive. Stay on your sparkly toes! Keep an eye on the market and adjust as needed. If the price approaches the edge of your range consider rebalance 🤗
By “easy” are you thinking like v3 LP automation? I don’t think I’ve seen such projects on base yet. Visor? And wrt minimizing impermanent (unrealized) loss, beyond just sticking to pegged assets/pools, it would require some automated strategy right? I’m curious to see real answers here.
narrower range but this requires more monitoring as your liquidity could easily get out of range
If you just do it one sided you can view it as a sell or buy order
Ser, this is a Wendy’s May I interest you in my automated technical strategy, YOLO?
Might be easiest to do a full range position Uni v2 style especially since there are liquidity mining rewards that should help compensate for some of the IL
IL is inherent to any LP, don't believe anyone who says otherwise. Bancor tried to solve this by reimbursing LPs their IL in $BNT which led to hyper-inflating the token and its collapse (it's a great cautionary tale if you want to hear more) ⬆️ fees = narrow range = ⬆️ IL ⬇️ IL = broad range = ⬇️ fees
Lol at there not being a single straightforward answer here 😂 Adding liquidity to Uniswap has gotten consistently harder and harder to follow with every protocol upgrade. I don't even try these days cause the LP rewards (even with incentives) very rarely outweigh just holding the token.
The only automated liquidity management provider I know of is gamma.xyz and they don't presently support Base.
Just don’t remove the liquidity. Unrealized loss ain’t a real loss ⁉️⁉️
Couple ways, if you concentrate ur position in a narrow range u reduce ur IL risk, you’ll likely babysit/manage your position to keep in range. volatility is a big factor, stable coins being one side instead of eth helps smooth that out as well
Having a USDC / DEGEN LP would be the way to go. IL is amplified when both assets are volatile - stable to token pairs can help.
We are launching supa on base in the next couple of weeks. This will help users automate LP strategies and once panoptic is live you’ll be able to automate your panoptic positions on uniswap from supa.
You will suffer IL; avoiding it is not a thing. (No matter the AMM gymnastics.)
probably revert.finance but you also have to remember IL is a meme that the OGs created to keep the normies poor. Just treat an LP as a limit buy (low tick) and limit sell (high tick). You like the token anywhere between whatever you select.
The only way to minimize impermanent loss risk is to provide "active" liquidity. Meaning you adjust your position as prices move. You can use UniV3 as a limit order of sorts and just put a bid or ask out of range and then pull your liquidity once it's filled if you're wanting to simplify things.
might help 👇 https://warpcast.com/nbragg/0xa31eabd1
