Uniswap experiences a 36% increase in volume!
Let’s see where all the money is going:
How to benefit as a farmer:
Although I would advise waiting for the best entry point for ETH, the volume has allowed for great APRs at the moment when adding concentrated liquidity for WETH/USDC and WETH/WBTC pairs on Uniswap. By providing concentrated liquidity you’re offering your liquidity while the trading pair sits between certain price ranges:
WETH/USDC
The idea is to make the liquidity as concentrated as possible, I recommend providing a price cushion of $100 on either side of the range because if the price fluctuates beyond those bounds, the impermanent loss will eat up your gains anyway. Once you provide liquidity, watch the price daily, and remove and add your position back as necessary to adjust for ETH price changes.
The same principles apply to the BTC/WETH pair but you can have a tighter price range because the price movements of BTC and ETH are similar— relatively speaking.
Appreciate and accept all feedback!
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