How to Track Concentrated Liquidity Performance

The most important aspect of your crypto investments in the context of Concentrated Liquidity Pools (CLP) is management! Deploying capital requires a lot of analysis and planning but since market conditions are dynamic by nature we need to be able to track performance and make decisions based on the most relevant metrics at our disposal.

This guide is going to show you how to use this amazing tool by Metrix Finance created to help investors track their CLPs and make good decisions based on real data regarding their DeFi portfolios.

Getting started

Go to Metrix Finance’s main page:

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1. Click on Track.
2. Type in or paste your EVM wallet address. (no need to connect wallet).
3. Wait for the wallet information to load. (network time varies).

After inputting your wallet address on the dApp you should be able to see a list of liquidity pools (LP) associated with the specified address and a few general options.

1. View your opened/closed positions or all of them.
2. A list of all current positions with their respective numbers such as APR, total fees and their individualProfit/Loss.
3. Too many positions to manage? You can filter them by Exchange and by Network.

The circled components on the right side of each row show you where the price is relative to your current ranges which works as visual aid to help you make quick decisions. This is especially useful when dealing with a large list of LP positions.

The main page alone is enough for users to overview what’s going on with the CLPs linked to a wallet but there is more: By clicking on the Details button it’s possible to visualize all the details specific to the selected LP.

The Detailed View

The detailed view for a LP position shows users data related to how a specific pool has progressed as well as their respective future projections for alternative strategies related to the current one.

For this example:

1. The LP pair (WETH/LINK)
2. The protocol (Uniswap)
3. The network (Ethereum Mainnet)
4. The fee tier (0.30%)
5. The status (In range)

The top section displays all the metrics users are already familiar with from the main page: Current Liquidity, Earnings, Profit/Loss and APR. It’s important to notice that Profit/Loss does take into account the difference between Earnings and Asset Gains which is a measure of depreciation or appreciation of each pair.

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The Composition section can be interpreted as follows:

1. Your assets when liquidity was initially deposited into this LP.
2. How much your assets would be valued at outside this LP as a holder.
3. Your current position value.

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The Divergence Loss section is quite interesting as it shows users how their positions are doing when compared to three hypothetical scenarios. In this example: 100% LINK, 100% WETH or 50%/50% LINK/WETH.

The first row (HODL) shows how much “hodlers” are making in each scenario. The second row (Divergence Loss) shows the impermanent loss (or cost of opportunity) for each case. And the last row (vs HODL) highlights how much your current position is making compared to hodlers for each case.

The Position Liquidity graph allows users to toggle which strategies to track over time. In this example it’s possible to see how this position is outperforming anyone who decided to hold the same initial assets as LINK in their wallets during the specified period.

The Price Range window is great to help you control exposure since it calculates how much of one asset has been converted into the other one. This is useful if your strategy includes closing or rebalancing a position based on exact quantities. The bottom component displays a graphical representation of the current price relative to its current range.

Summarizing

The CLP tracking software by Metrix Finance is a new tool fine tuned for Liquidity Providers all around. It features pretty much every functionality investors need in order to manage their positions and strategize new ones based on performance.

It’s the first version released to the public and it’s available for free so we hope you take the most out of this new product and keep coming back for more!

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