Comparing @Uniswap vs @AerodromeFi ....which is better to provide liquidity during HIGH VOLUME capitulating price action where Concentrated Liquidity shines?

Here's volume/fees over the past 4 hours. Uniswap has generated over $13.2k in fees on ETH/USDC on $BASE. 227% APR

@AerodromeFi has been pretty consistent in paying out on average a 77% APR on a $2470-3873 LP range on ETH/USDC. 

As I was monitoring my emissions during the past few hours, I gained over $30 in yield in 3 hours. A 175% APR of yield over the past 3 hours of high vol capitulation

Over the past 24 hours, @Uniswap has generated over $37,600 in yield. 

Subtract the past 4 hours of HIGH yield of $13.2k then divide by 20 hours and multiply by 24. You get $29.2k of yield/day. An 84% APR which is what to be expected on average. A little higher than @AerodromeFi 

Verdict? During times of low volatility and high volatility... @Uniswap is still KING of liquidity and volume.

@AerodromeFi has made a valiant effort trying to take down the King. They have a great model which pays decent emissions over time. Good for those bullish on $AERO

What will it take for competitors of @Uniswap to gain market share? 

Join our community to MASTER Concentrated Liquidity. I partnered with @cryptonoah11 and the @knowitowlz to help you on your journey in yield farming within DeFi. Mention Float_Locker

https://knowitowlz.xyz/

Join my Discord for FREE community access discussing concentrated liquidity. I also offer personalized mentorship where I will jump on a call with you one on one, analyze your portfolio, & give you tips on optimizing your LP's to maximize yields!

https://discord.com/servers/defi-coinoisseurs-948648317351510096

You can read the unrolled version of this thread here: https://typefully.com/FLOAT_LOCKER/rIpMKj3

Uniswap vs Aerodrome: Liquidity Showdown!!

@beefyfinance recently launched their highly anticipated Cowcentrated Liquidity Management (CLM).

Being an avid concentrated liquidity provider myself, I was excited to give this a go!

TLDR in next tweet.

TLDR: CLM outperforms HODL in choppy markets & MINIMIZES IL vs other ALM's on the market. 

How? No rebalancing via swapping! Saves unnecessary IL, & rebalances the weak asset using the market via its "adopted range".  In addition, you incur NO slippage! 

I'll elaborate below

I staked on Beefy's ARB/USDC pair. The incentives from @merkl_xyz & @arbitrum are nice and I had some $ARB sitting in my wallet doing nada. 

Here is 13 days worth of rewards on a $7,297 initial deposit. This is IN ADDITION to the yield earned on the trading fees of $125.

Rewards and yields are nice, but my long time problem with ALM's are the excessive IMPERMANENT LOSS they incur running THEIR strategy and why I have avoided them for so long. 

I've spoken about this at length in the thread below
https://x.com/FLOAT_LOCKER/status/1707575966678364424

Beefy "reranges" the LP to get back to 50/50 with the existing liquidity split then takes the remaining liquidity (weaker asset) and sets up a single sided LP (SSLP) using the "adopted range" which is just the range prior to the "rerange".

@RobMcStodda & @ApertureFinance (with a small input from me🫠 ) team created their Automated Liquidity Management tool that solves this problem. It gives the power to the user to manage their own strategy. 

But I digress, my experience with @beefyfinance below

Depositing had challenges. Beefy determined when to deposit & would not if the market was too volatile. I refreshed until I was allowed. This took a bit of time.

It would be nice to have a way to deposit & Beefy can eventually stake the LP when conditions improved.

Another challenge was being unable to deposit in both $ARB & $USDC at the same time. 

At deposit Beefy would not accept USDC and only ARB. So I had to go and swap my USDC -> ARB on @DefiLlama then go to Beefy, & they "convert" 50% of my ARB BACK to USDC. Why? Explained below

The entire vault was imbalanced. Upon every deposit & harvest, vault is reranged back to 50/50 using the deposit & fees respectively

In my case, vault was heavy USDC & needed more ARB to rerange which then uses USDC from the SSLP to match my ARB deposit 50/50. NO CONVERSION 👍

@beefyfinance CLM does something no other ALM does. 

The LP stakes 50/50, as price oscillates the ratio changes. When rebalancing BACK to 50/50 they DO NOT swap the weaker asset, they simply set it up in a SSLP to let the market REBALANCE it for THEM! 

Genius!

Beefy frequently RERANGES the LP back to 50/50 multiple times per day by using the EXISTING liquidity ratio, then takes the remaining "left over" liquidity and stakes it into its separate SSLP to let the market "rebalance" it for them! 

NO SLIPPAGE & NO EXCESSIVE IL!


Can I do this on my own using @ApertureFinance? Sure, but then I'd spend my entire life in front of the screens & wouldn't be able to travel the world as I have been doing :)

It's not WORTH the time to do it on your own if the reward isn't sufficient! Terrible ROI on TIME!

Beefy handles this for you. Although they charge a MAXIMUM fee of 9.5% of TRADING FEES EARNED...it's a small price to pay. 

Not to mention, the APY you see on @beefyfinance has fees factored in!

Hoping @revertfinance @ApertureFinance @KrystalDeFi etc take note! :)

Fees MATTER!

So how has my performance of this ARB/USDC pool been for me? Phenomenal. IL is very minimal, and I get the white glove service of having @beefyfinance handle the management. Completely hands off. Love it!

Not to mention the @merkl_xyz rewards!

As you can see, I've earned AN EXTRA $84.51 over a HODL'er in 13 days. This extrapolates to an EXTRA 32% in profits in a year over HODL'ing. 

@beefyfinance has Made ALM's Great Again! 🤝

My burning question for @beefyfinance? What if price gets a god/death candle that blows price out of range? What does Beefy do with the range in this scenario? Stay 100% in the single sided Alt pool and depend on deposits/harvests to replenish the other asset?

I partnered with @cryptonoah11 & @knowitowlz to bring forth top notch DeFi education. You will learn directly from myself and our coaches to see exactly how we manage our portfolios to help you on your journey. Sign up for a FREE strategy session below!

https://forms.gle/Dku2YWWq17MfUKcZ8

My Discord is also free to join and we can chat about concentrated liquidity, market analysis, and even what shitcoins to slang at the wall! 

I also offer a monthly 1-on-1 mentorship for those that get direct access to me personalizing their LP strategy!

https://discord.com/servers/defi-coinoisseurs-948648317351510096

You can read the unrolled version of this thread here: https://typefully.com/FLOAT_LOCKER/qvRnifl

Introducing Cowcentrated Liquidity Management from Beefy Finance

@Uniswap V3 farmers, deciding whether borrowing against your spot holdings to LP or LP'ing the entire stack? I got you.

Comparing 2 strategies for $ETH $USDC pool:
1.  Borrowing 50% in USDC LTV to LP
2. Simple LP 100% of assets (no borrowing) #UNIV3

Which one is better? 👇👇

Investment - $12800
Price of ETH - $3200
LP Range for ETH/USDC - $2555-4000
LP is 50/50
LTV will be 50%
Forecasted APR - 47.13%
Timeframe - 1 year
Yield APR will be a flat rate & based on $3220 avg price
Borrow APR NOT accounted so add a 10-20% fee to the loan

Let's get started:

I am breaking down the results in 3 separate tweets that will follow this one. Each will show values at the lower and upper range set:
- LP Value ONLY at exit
- LP Value & Yield at exit
- LP Value, Yield, Lent Asset Value, & Loan Repayment at exit
- All results calc'd for @base 

Results WITHOUT ⚠️1 year⚠️of yield earned. LP VALUE ONLY

🟢 Borrowed LP exit at $4k - $375 Profit
🟢 Simple LP exit at $4k - $750 Profit

🛑 Borrowed LP exit at $2555 - $985 Loss
🛑 Simple LP exit at $2555 - $1970 Loss

Results WITH ⚠️1 year⚠️of yield earned + LP VALUE (Lent Asset Value NOT calculated here)

🟢 Borrowed LP exit at $4k - $3392 Profit
🟢 Simple LP exit at $4k - $6783 Profit

🟢 Borrowed LP exit at $2555 - $2032 PROFIT
🟢 Simple LP exit at $2555 - $4063 PROFIT

Results WITH ⚠️1 year⚠️of yield  + LP VALUE + LENT ASSET FINAL VALUE + Loan Repayment

THE FINAL NUMBERS 👇👇👇

🟢 Borrowed LP exit at $4k - $6592 Profit
🟢 Simple LP exit at $4k - $6783 Profit

🛑 Borrowed LP exit at $2555 - $548 Loss
🟢 Simple LP exit at $2555 - $4063 PROFIT

Summary:
- Borrowing to LP isn't ideal long term
- Yields of the SIMPLE LP will win long term (1 year+)
- Short term borrowed LP can win, but don't overstay welcome longer than a few months (may as well trade)
- Borrow fees NOT calculated here so add 10-20% borrow fees to loan 

My thoughts:
- Long term, Simple LP WINS
- Use @ApertureFinance to maintain higher ETH ratio to increase LP gain (increases risk exposure)
- Simple LP is easier to manage
- Borrowing isn't capital efficient 
- Using perps on leverage can allow larger LP allocation but riskier


If adding a trading strategy and methodology to identify whether to use the Simple LP vs when to use the Borrowed LP approach, this can be a VERY powerful strategy. 

Someone like @ctoLarsson can utilize this to generate additional alpha in trending & choppy markets!

I'm looking forward to the progression of this space. With platforms such as @Panoptic_xyz @SmileeFinance paving the way for better tools and better ways to manage our liquidity, I'm only excited for what's to come!

Thank you to @MetrixFinance and @jakeacall for the robust tooling to help me calculate this. I used @DefiLab_xyz last year which brought some challenges. Still a great tool and the OG pioneer of the space.

The borrowed calculation #'s for those interested in how I derived the results:

Loan was depositing $12,800 of ETH at $3200 (4 ETH)

Borrowed LP - 4k exit:
6775-6400 - 375 LP profit after loan repayment
3017 =  yield earned
16000-12800 = +3200 Lent Asset Profit
6592 total profit

Loan was depositing $12,800 of ETH at $3200 (4 ETH)

Borrowed LP at 2550 exit:
5415-6400 = -985 LP difference vs loan
3017 = yield earned
10220-12800 = -2580 Lent asset Loss
-548 total Loss

This thread is an improved update to the thread I tweeted last year shown below. I noticed there were some mistakes made that skewed the numbers, but the overall concept is still intact:


https://twitter.com/FLOAT_LOCKER/status/1644789651872563201

You can read the unrolled version of this thread here: https://typefully.com/FLOAT_LOCKER/V919LVv

The Ultimate Uniswap V3 Dilemma - Should You Borrow to LP against your assets?

Want to know how to generate 1,138% APR on $ETH like I have? 👀

Run a single sided LP to "buy the dip" on your favorite asset.....then....here is the sauce.......forget about it for 16 days......then come back to a surprise 7.67% ROI🤣

For more "ALPHA" like this, join our Discord 🤣

https://discord.com/servers/defi-coinoisseurs-948648317351510096

You can read the unrolled version of this thread here: https://typefully.com/FLOAT_LOCKER/IXCT5yo

The "SECRET" to earning over 1,000% APR on Ethereum 👀

Let's talk about automated LP managers in the likes of @GammaStrategies @ArrakisFinance @dyson_money, etc

I believe there is a ton of confusion on these products.

Let me lay it out so YOU as the depositor can make an informed decision!

FIRST, let's start with Impermanent Loss. IL is opportunity cost.

This cost reflects the compromise YOU are accepting to make the trade. That's it!

It boggles my mind that so many in the space focus on "FIXING" IL when in fact it's inherent in nature. It's like a God complex!

This fixation on "fixing" IL confuses the space. We think IL is a "defect" of @Uniswap V3 Concentrated Liquidity.

Compare selling option premium in TradFi. IL is there. Selling covered calls/short puts, you are incurring IL giving up exposure to the asset to earn option premium!

So back to these automated LP managers. Are they terrible? Are they forcing YOU to incur IL? Does their strategy NOT work??

It depends. We first must understand one thing

They are trading ONE strategy

- THEIR STRATEGY -

But here is the problem with automated LP managers. 👇👇

TRANSPARENCY.

What are they doing with their liquidity pools? What kind of risk am *I* taking on as a depositor? What is *MY* crypto doing in THEIR strategy?

We have no idea.....and THIS is the PROBLEM!

How can we invest in something we as depositors do NOT understand?

We have no idea what their LP ranges are or where they are rebalancing. So how can we POSSIBLY know what their strategy is??

We can't.

We need to know if the "Tailored Suit" will fit!

(check out my YouTube video below on this topic)

https://youtu.be/_EYYHx5BETw

I understand they don't want to be copied, but the problem is that it hurts the depositor more than helps them keep their strategy a secret.

We need convenience. Strategies are a dime a dozen.

If WE can understand THEIR strategy, and it aligns, we WILL pay for convenience!

If we fix the lack of communication of the strategy, then IL will no longer be a problem!

Because those of us that ACCEPT the IL that is possible in THEIR strategy will allow us to develop confidence in THEIR strategy!

It really is that simple.

IL isn't the problem. It never was. It's the inherent nature of providing liquidity. It's a tradeoff.

We can't have ALL the YIELD without giving up some opportunity in other areas! That's why it's called trading.

Stop being so greedy! We can't have our pie and eat it too! :)

Back to focusing on these platforms.

I cannot invest in something that I do NOT understand.

Not saying we must know every rebalance and every range they rebalance in to. We don't need every detail. And this is all they need to become "vague enough" to avoid copy traders.

We need communication from these platforms outlining how much IL to expect, what they are striving to limit in IL, along with a general overview of the actual strategy, we'd all be better off.

Something along the lines of

"Hey we will strive to lock in X% of IL while keeping our ranges in an x% width type of range although there may be outliers....blah blah blah"

If they so please, I am available to help with this. Feel free to DM me :)

At least we as depositors can have a guideline

We need communication on strategy from @ArrakisFinance @GammaStrategies @dyson_money. They are farming US by having US take on all IL while they reap the rewards shows a disregard for US and is frankly disrespectful! Let's fix this!

Their strategy will not fit everyone. But we need to know what they are doing to make an informed decision and understand the expectations of using THEIR strategy!

- FINI -

You can read the unrolled version of this thread here: https://typefully.com/FLOAT_LOCKER/R6rBBeI

Demystifying Automated Liquidity Pool Managers: Making Informed Decisions

Want to trade the markets with the skill of Van Halen?

A guitar represents the Market.

Whether it's acoustic or electric represents the Trading Strategy.

How well you play the riffs and chords to a song represents your understanding of the MECHANICS about the instrument.

Trading options, futures, stocks, crypto, bonds, flaming dog sh!t....it doesn't matter. Nearly ANY asset can be traded.

More importantly....ANY trading strategy off the shelf WILL WORK!

YES!....it's a damn guitar for heaven's sake! It will play music!

So why do so many people blame trading strategies (the guitar) for their lack of profitability??

Why are they spending so much time losing money and no strategy (guitar) seems to work?? 👇👇👇

The problem isn't the strategy (guitar) itself. And even though psychology has a role in this, I will not focus on this.

The problem is YOUR misunderstanding about the underlying MECHANICS of the INSTRUMENT you're trying to play!

Wut?

YES! If you pick up the guitar for the first time, try to play the great @eddievanhalen song Eruption, you'll quickly find out that you absolutely suck at it.

But will you throw down the guitar and call it a scam? Hmmmm 🤔...of course NOT!

https://www.youtube.com/watch?v=M4Czx8EWXb0

It's imperative we understand and learn the inner workings and mechanics of the instrument we are trying to trade!

- How much liquidity is in it
- How does it behave? Does it fit our personality?
- The more we trade it the better we understand it
- PRACTICE PRACTICE PRACTICE!

The song is the asset. There are plenty of assets (songs) to choose from. What may not vibe with one, will for another. Find YOUR song and master it. 🙂

Whether you're a scalper, day/swing trader, long term investor....it doesn't matter!

Focus on the process, and focus on learning how the instrument operates. Master it. Only then can you have the guitar (trading strategy)
🎵🎶 SING PROFITS! 🎶🎵

You can read the unrolled version of this thread here: https://typefully.com/FLOAT_LOCKER/Y6afxWk

Trading: Playing the Markets like Van Halen

There is a problem with the Concentrated Liquidity space that we need to talk about.



First the good. We have tools available and being developed by:
- @ApyVision
- @DefiLab_xyz
- @revertfinance
- @BuildrMetrics
- @ApertureFinance
- @uniswapdotfish

These tools allow liquidity managers the flexibility to structure and manage their concentrated liquidity pools!

Trust me.....you do NOT want to do this manually! I've been there, and it's hair-rippingly aggravating.

Imagine tailoring your own custom suit from scratch??

These tools allow us to create our own strategies....our own tailored suits if you will.

Confused on the comparison? Check out my YouTube video on this exact topic in where I explain how a trading strategy is like a tailored suit. Fit to order.

https://www.youtube.com/watch?v=_EYYHx5BETw

The bad? Current automated liquidity management platforms.

We are being herded into wearing a "tailored suit" that does NOT fit EVERY one of us. Off the RACK! Uggh!

We NEED options. Options to CUSTOMIZE our own strategies....create our own TAILORED SUIT!

We need automation of mundane and difficult (to the avg user) tasks to achieve this! Calling @ArrakisFinance and @GammaStrategies and the like.

We need complete control of rebalance/reranges. LP managers need to control IL that is fit for THEM!

We have LP managers on @Uniswap V3 that farm narrow ranges, some farm tight ranges, some are super active, some are passive, some like to hedge, some don't.....

Each one of these LP managers need a different fitted suit!

They have the capability. But I strongly feel the focus of these automated platforms is on creating a strategy as opposed to providing a platform that can automate tasks to achieve trade ideas for EACH individual.

@ApertureFinance has the right idea - their tool is in beta

Am I the ONLY person with this complaint? I find this hard to believe.

LP managers need proper tools. We need customization. We need a tailored suit. Not a suit off the rack. 🙂

You can read the unrolled version of this thread here: https://typefully.com/FLOAT_LOCKER/Rn8F8a5

The Problem with Automated Liquidity Managers!

How can YOU earn 176% APR on $ETH & $USDC in REAL Yield while managing your LP's efficiently?

No incentives, no fugazi, but real yield. No shitcoin to sell before it plummets in value, no lockups, no BS.

See my results earning high yield with minimal Impermanent Loss

Thread 👇

@ApertureFinance recently launched their @Uniswap V3 tool where Liquidity Providers can manage their positions efficiently with ease!

I am happy to say it's been working great! I can sleep well with very tightly ranged LP's and not having to worry of them going out of range.

A summary of the tool:
- Set up AUTOMATIC triggers to rebalance based on Price, Time, or Ratio
- Rebalance action includes unstaking, swapping to rebalance using @1inch
- Staking the LP at the predetermined parameters AUTOMAGICALLY
- The option to reinvest the yield earned

When the trigger activates, Aperture's tool rebalances your pool through the actions mentioned & stakes your new LP without you having to lift a finger!

The biggest issue for me is making the time to actively manage my LP's. This is THE SOLUTION I've been searching for!

Now on to the results. I have rebalanced an $ETH $USDC LP 10 times in the span of a week (very active for me) while generating HIGH yields CONSISTENTLY on $ETH $USDC liquidity pools while MINIMIZING Impermanent Loss to make it a non-factor!

Shout out to @ApyVision for tracking!

And it only gets better. @ApertureFinance automated @Uniswap V3 tool minimizes slippage by utilizing a Dex Aggregator @1inch to perform the rebalancing swaps. LOW SLIPPAGE!

I've seen very little slippage throughout these transactions, but a real test will be on a larger LP.

These types of yields and management would not be possible for ME, simply because I am unable to make the TIME to sit there and manage my LP's.

I get to sleep easy knowing that @ApertureFinance is there to manage my LP's to keep farming those yields consistently!

The tool is currently in beta, but may still be available to whitelist wallets to try it out. Check out https://app.aperture.finance/ to sign up.

Definitely a game changer for liquidity providers that have their own strategy.

I recognize projects like @ArrakisFinance @GammaStrategies @0xOrangeFinance & other automated management platforms, but we have yet to see a tool that enables full control for the Liquidity Provider to fine tune their strategy with automation

Wen @enzymefinance can integrate? 👀

If you'd like to continue the discussion, I run a small Discord community based around UNIV3 Concentrated Liquidity Pool. Learn the mechanics to control IMPERMANENT LOSS and base YOUR strategy around it!

Join Free https://discord.gg/uBqJ8gasFX

You can read the unrolled version of this thread here: https://typefully.com/FLOAT_LOCKER/jhKY20H

Aperture Finance - AUTOMATED Uniswap V3 Management - HIGH YIELDS!

In the quoted thread I laid out my #uniswap v3 LP's to earn:
- $12,767 in PROFIT
- $7,217 of that in yield
- $5,550 in appreciation.

ALL IN A FEW WEEKS

In this thread 🧵 I will breakdown my performance the past 3 months & highlight how TRACKING LP's can be the edge need ⬇️⬇️

https://twitter.com/FLOAT_LOCKER/status/1636079861776412672?s=20

What to expect in this thread?
- Performance of a @Uniswap V3 LP farmer (me) vs a HODL'er
- Real P&L Breakdown with PROOF
- How I achieved this performance and continue to outperform HODL consistently.
- Performance from March 21st 2023 through June 25th 2023

HODLer's performance?
- $8,218 PROFIT
- ZERO YIELD
- ZERO IMPERMANENT GAINZZZ

Starting Price: $1761
Current Price: $1899

Value:
$1761 - $191,410
$1899 - $199,628.60

Max Drawdown at $1626 $ETH price:
- $8,125.91 LOSS

I earned in $ETH $USDC UNIV3 LP's:
- $21,760 PROFIT
- $12,616 of it in YIELD
- $9,144 in LP appreciation
- $925 in IMPERMANENT GAINZZZ💪

Starting Price: $1761
Current Price: $1899

Value:
$1761 - $191,410
$1899 - $213,170

Max Drawdown at $1626 $ETH price:
- $19,951 LOSS

You won't see the total reflected in the screenshot above as I withdrew $11,550 in liquidity during that drawdown. I took yield earned throughout to deposit into a BTC/ETH LP for directional exposure.

We won't see the effects of yield compounded in this scenario due to this.

The drawback? I had a LARGER drawdown than a HODL portfolio. Drawing down over $11,825 more than the HODL'er. This is definitely a risk to consider.

BUT! I have a LONG time horizon. A few months yield will overcome it. Which would make the upswing MORE explosive = BIGGER PROFITS

NFT ID's for reference for those looking to investigate in chronological order:
- 795780
- 833672
- 864205
- 870117
- 891931
- 913289
- 921055
- 924960 (ACTIVE)

To summarize:
- Earned $13,542 MORE PROFIT than a HODL'er
- I took a larger drawdown
- Long time horizon will overcome difference in drawdown through yield
- LP Grouping is the key to success in UNIV3 LP Farming.

Join my Discord for FREE where I discuss UNIV3 mechanics & show how to implement ANY trading strategy to it.

https://discord.gg/uBqJ8gasFX

You can read the unrolled version of this thread here: https://typefully.com/FLOAT_LOCKER/Cr9liob

Credit to @ApyVision for helping me track my data, without them it would be very difficult. If you can't track your performance, what's the point? :)

Leaders in the space such as @GammaStrategies @ArrakisFinance @mavprotocol @CryptoAlgebra @traderjoe_xyz may find value in this.

Liquidity Providers: Impermanent GAINZZZ Using Uniswap V3

Possible to successfully Delta Hedge @Uniswap V3 concentrated liquidity pools? YES.

It's a DOUBLE EDGED sword if not properly managed, though!

I will go over the pros and cons of how Delta Hedging can both help and HURT your LP portfolio and when to implement this strategy.

In a previous thread I mention that APR's in Uniswap are dwindling for Liquidity Providers.

https://twitter.com/FLOAT_LOCKER/status/1663107940113604610?s=20

Markets are getting leaner. APR's drop as more competition enters. Sloppy market participants are getting weeded out. Sloppy mechanics become the downfall of the unprepared.

Delta hedging to create neutral LP's primarily relies on yield for profit making it more difficult.

The drawbacks of delta hedging:

- Detrimental for long term. Especially on chain hedging. Collateral does NOT earn yield
- Losses may quickly compound due to impermanent loss (IL) and mismanagement of risk.
- Complex strategy that requires precise planning (easy to mess up)

The benefits:

- Provides a way to stay in the market earning yields during uncertain times
- Reduces portfolio volatility
- Hedging what you only need is a better approach for longevity


With yields dwindling in Uniswap, it's becoming more prudent to structure liquidity pools WITHOUT a hedge to maximize yield while mitigating risk.

Once the limits of pool structuring and rebalancing have been met, delta hedging becomes the next step to continue generating yields

Factors such as slippage, transaction fees, interest paid for borrowing must all be considered. Is it worth the trade off? Have you maximized the efforts in using defensive pools without hedging (ie USDC heavy pools vs $ETH)?

Delta hedged LP's also have negative exposure to price up AND down.

- Price moves up, you get more short
- Price moves down, you get more long

Your P&L will be negative. This must be built in to your trade plan. When do you manage? How do you rebalance? Very important.

Most fail to realize a liquidity provider takes the OTHER side of a trade the majority do NOT want. If you're a contrarian by nature, this should ring true.

It requires stepping out of a traders mindset.......while also thinking what a trader may do. Then strategize around it.

A project worth following is @0xOrangeFinance - they are working on creating a delta hedged vault that utilizes concentrated liquidity pools and lending/borrowing to create a hedge when necessary. Worth keeping tabs on for sure.

If you're interested in deep diving and interested in learning how to generate consistent yield in UNIV3 concentrated liquidity pools, join my Discord for FREE! Our community is focused on concentrated liquidity strategies.

https://discord.gg/uBqJ8gasFX

If you found this thread helpful, please retweet the first tweet.

You can read the unrolled version of this thread here: https://typefully.com/FLOAT_LOCKER/8c9assq