Finding the BEST Uniswap V3 Opportunities with Metrix Finance

Uniswap has become one of the largest Decentralized Exchanges in the world.The V3 protocol alone reports a TVL of over 3.3b USD and a derivatives volume of about 1.4b daily which represents a great potential for liquidity providers all around the globe since the crypto market can be operated in a permission-less manner within the DeFi space letting users keep full custody over their assets!

Uniswap currently offers services on ten different networks where you can swap coins at market price or submit buying/selling orders directly without order books or intermediaries all thanks to their Automated Market Maker  system.

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The question now is how to make the best out of so many opportunities without wasting hours on alternatives that don’t quite fit your risk strategy or your projected potential investments?

Luckily we do have an answer for you: Metrix Finance, a platform dedicated to finding opportunities with ease, analyzing options and even simulating strategies before deploying your capital. All in one!

How to find great liquidity pools with Metrix Finance

Goto the Metrix Finance website and follow these steps:

1. Select Discover from the main page.
2. Select the Uniswap exchange.
3. Select a network. Avalanche will be used for this example but Pro Users★ can select more than one at the same time!
4. Use your favorite sorting criteria (Fees APR was used in this example)

After these four initial steps you’re going to be presented with a list of results. The dApp will show you ten results per page by default which you can navigate while picking your favorite pools by clicking the star icon so your choices get saved to your favorites tab.

Once done with your initial selection you can go to your Favorite Pools tab. In this example 6 Liquidity Pools (LPs) have been selected and are now sorted by volatility so you can analyze risk.

From this list you can see the most volatile pair is USDC/WAVAX and the most stable one at the end of the list is DAI/USDC. Notice how the most volatile pair has twice as much APR but it has more than 12x the volatility risk, at the same time USDC/WAVAX has a TVL value 33x larger than DAI/USDC which makes it less susceptible to slippage risk.

You can eliminate a few options by deselecting the star icons so in this case the list got reduced to only two options and sorted again by Fees/TVL but of course different investors are going to use different criteria so once done, just click on the Simulate button for the next step!

Simulating your Liquidity Pools

At this point we are ready to run our first simulation using one of our previously selected examples,in this case the WAVAX/WETH-0.05% pool. Let us start by understanding what the main controls in the user interface allow us to do.

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1. Insert the amount you intend to invest here assuming you could zap into the pool
2. This number shows you how much you can make every day by providing liquidity.
3. This section shows your gains in absolute($) and relative(%) values base on historical price data.

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The next step is to adjust the simulation based on the historic behavior of the assets and the range required for your Concentrated Liquidity Pool (CLP) to work:

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1. Input the number of days to simulate here. It uses price data from Uniswap itself!
2. Input the price value here. (current price is set by default).
3. Set the minimum and maximum prices this pool will trade. The plus & minus buttons are great for fine tuning!
4. The sliders on this bar are good for larger changes. (-16% and +12% in this case)

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• This window provides extra information and useful statistical data you can use to further analyze your simulated position.
• The ones market with yellow rectangles are exclusive to Pro Users★!

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Analyzing a few Charts

The first chart below shows you the price allocation distribution. It’s possible to see where most of the price has been allocated as well as where it’s being currently traded. The current price is marked with an X and your selected range is represented by the arrows. As long as the price stays in this range your CLP will be earning fees for you!

The second chart shows you where your price and range positions are relative to price change over time. It’s easier to decide what your minimum and maximum prices are going to be by analyzing how the price behaves within a time frame (14 days in this case).

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The Volume History chart is great for checking if the current trading volume is adequate for your investment. It shows you how the liquidity pair has behaved in the past few days as well as the corresponding average so you know how much stability to expect from its trend.

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The Bottom Line

Finding the best opportunities on the market is best done when you have the best tools at your disposal and that’s exactly what Metrix Finance is here to provide. Most features on our platform are available for free and more are being added based on feedback from our community.

The tools available on the Pro Version might as well give you the edge you need to make a difference in this competitive market which is why we work our best to constantly improve our products.

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