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 ⬇️⬇️
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)
Screenshots of the first 4 NFT's.
Screenshots of the last 4 NFT's
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.
discord.gg/uBqJ8gasFX
You can read the unrolled version of this thread here: 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.