Liquidity Book Journal Update: Days 3 to 6

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Liquidity Book Journal, Days 3 to 6 I'm back! And I'm so curious to see how much I've made and how my strategy turned out. Let's dive right away ↓

BTC.b - USDC My USDC liquidity got completely burned down as BTC went below my lower 29.8k bound earlier today. But this LP is still getting built, as users migrate from the V2 to this V2.1 pool, so fee earning is still not ideal. I basically lost a few dollars.

I'm going to rebalance this completely: - remove all liquidity - swap 25% of BTC.b into USDC - put in a Bid-Ask I can rebalance even more times per day now, so I don't care if the liquidity is narrow. I'm betting on BTC's upside in the next 12-24 hours.

Next, AVAX-USDT. My AVAX got burned all the way through their mini bull-run today and yesterday. Some of you may ask: "but wouldn't it be better if you had just held on to your AVAX?"

No, it's not. Because I didn't know whether AVAX would go up, and if it went down again, I'd erase my profits. I took all profits at 19.60$ and earned about 83$ (1.4%) in fees in the last four days. This is exactly what I'm looking for: controlling volatility.

I'm applying the same strategy I used in the BTC.b - USDC above: - removing all liquidity - claim fees - swap 25% of USDT into AVAX - put in a Bid-Ask This is what it looks like now. Hoping on a bit of downside tonight with this liquidity position.

Next, AVAX-USDC. Same as AVAX-USDT, of course.

But here I made a little more money: about 95$, even if the liquidity amount was a bit smaller. To hedge my AVAX-USDT position, I'm rebalancing in the exact opposite way, swapping 75% of USDC into AVAX.

This is what the liquidity looks like now.

Finally, JOE-USDC. My JOEs got burned though all the way up the mini-bull to .62 and beyond.

And I didn't get any fees it seems, or very very low - 30$ in the last 2 week or so. So I'm going to narrow it down a lot into a Bid-Ask, again after claiming fees (15$ that I didn't claim in the last week).

By narrowing the number of bins, I'm also reducing the fees that I'll need to pay to add it now remove it in the future. This is what it looks like now. Yes, I'm betting it retraces a bit in the next 12 hours.

Overall, I made just 0.19% in profits over the 4 days, very low. I lost about 170$ on the BTC.b-USDC pool and compensated well enough in the others. What I learned: I reached the goal of not losing money (yay) but I didn't set the bins wide enough to earn fees at any time.