Entry: A user invested $1,000 (500 USDT & ~192 TON) when the price of TON = $2.6.
Range on Bidask: They set an active trading range from $2.3 to $3.0.
Question: What happens to their position after 3 months in a volatile, "sideways" market?
🔘 Path #1: Simple HODL
Let's assume the market was volatile, but after 3 months, the price of TON returned to its starting point of $2.6.
Final HODL Result: $1,000. The price didn't change, so there's no profit.
🔘 Path #2: Providing Liquidity on Bidask
In a market with active trading within a range, a liquidity provider earns the most.
Impermanent Loss (IL): Since the price returned to the entry point, the IL is $0. These are perfect conditions to evaluate pure fee income.
Fees Earned: Inside a narrow range, capital works with super-efficiency. Even with a conservative 40% APR, the fee income for 3 months (a quarter) would be:
$1,000 * 0.40 (APR) / 4 quarters = +$100.
Final LP Result on Bidask: $1,000 (value) + $100 (fees) = $1,100
Comparing the results over a quarter
LP on Bidask: $1,100 — a net profit of +10% for the quarter
Simple HODL: $1,000
In this scenario, the liquidity-providing strategy on Bidask proved to be significantly more profitable, generating $100 in pure profit in a flat market.
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