😱👺Uniswap v3: How to lose 10% from your deposit?😱👺
We showed you many successful cases on Uni v3, but now let's check losing positions. In the picture above, you see wETH/USDC position.
▪ Deposit: $2800
▪ Earned: $160
▪ Loss: $544
▪ Position age: 50 days
Mistakes:
1. Range is too wide.
- Wider range means you could accrue more IL (lose more funds).
- Also, it means that you will earn less APY.
2. Didn’t move the range.
When you use the strategy of a wide range, you should move the limit range once the loss of investments is ~0.5%.
3. Didn’t compound fees.
Always use auto compounds for long-term strategies. It will help you to boost your APY 2/3 times.
>> Here is a cool REKT article about losing money on UNI v3 (Liquidity providing). <<
Don’t be one of these people. DYOR or come to the master class. 🤓
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