Hello all,
I was able to successfully add liquidity to the Uniswap V3 ETH/sETH2 pool.
However after participating, the APR I have is only 3% compared to the advertised 21%. I am getting very little SWISE distributions.
Can anyone help direct me please? I have set my ranges from 1 to 1.05 and the market is within my range.
Thank you all for your help.
Hey @welcometo - great to see you joining the StakeWise community.
The most likely reason why your APR is only 3% compared to the advertised 21% is that your range that you set from 1 to 1.05 is wider than the optimal earnings range illustrated below.
When you have a wider range (e.g. the 1 to 1.05) the APR will be lower, hence your 3% APR rate, as compared to providing liquidity at a very narrow / tight range (e.g. as illustrated above) for the advertised rate of 21%.
Hope that helps! Also know that the DAO just completed a vote to extend the farming rewards into February, so there’s still a chance to earn liquidity rewards while farming.
Also note, to get to the 21% you have two choices. If you still have enough ETH and sETH2 to enter a new position, you can create a new position while keeping your old position. Or if you don’t have enough to provide LP, you will need to exit your current position and then re-enter in the new position illustrated above.
Or you can keep your range where it is at.
Thanks again for using the StakeWise platform!
-brian
Note: Contents of this message are not to be construed as financial advice. Do your own research.
@brianchilders That’s very helpful. Thank you for the detailed response. If I open a second position instead of touching the first position, would the higher rate affect my initial position? Or would the original position be essentially locked at 3%?
Also is there a way to see the projected yield % before approving the contract?
I’m just trying to avoid the gas fees of re-entering. Thanks
If you open a second position instead of touching the first position, your first position would continue to earn at the 3% rate. It is essentially locked at 3% with current market conditions holding. The second position would earn at 20% but would not affect the first position earnings.
Great question regarding projected yield % before approving the contract. I don’t think it’s possible, but tagging @kiriyha for ideas. If there’s a way I can programmatically render this on a web page, I may try to come up with a tool that does this. (It may take some time for me to discover this.) It wouldn’t be embedded within the Uniswap or StakeWise page but a community stand alone page that would allow you to see what the projected yield.
Understand that you’re trying to avoid the gas fees of re-entering, which is why I proposed leaving your first position alone, and start a new position with additional funds if you were able to do that.
-brian
I have not tried this tool out, so YMMV (your mileage may vary) but this site appears to help monitor the performance of LP pools in the DeFi ecosystem (I’ll try this out later on tonight).
This may be slightly overkill for what you’re looking for, but I’ll look for other tools OOTB (out of the box) that can help give us what we’re looking for.
-brian
