I just claimed some fees 2 hours ago, volume started to pick up and aprs shot straight up
Imagine HBD was popular, and imagine it was popular on EVM
Then you can take HBD and pair it with USDC and put a tight range
lets say you put a range of $0.94- $1.06 that way even when HBD un pegs you can still make some fees
those who make a range of $0.99-$1.01 will make way more fees than the person above but only when the price is between 99 and 1.01
if the price of HBD goes beyond 1.01 or below 99 then the one with tight range will make nothing at all until the price goes back to their range
v2 lp doest allow for flexibility like this.
you provide an equal side of both coins and you are off to the races
v3 FULL RANGE is essentially a V2 position
the thing with v2 is your fees auto compound while v3 requires manual interactions
V4 is basically V3 but with the ability to include contracts for the LP, called "hooks"
That is why reason I don't mess with v4 when v3 is available. its annoying having to investigate and scan code or run it through AI to make sure there is nothing shady going on
some might think stable pairs are the safest
how can you go wrong pairing USDT and USDC, no impermanent loss right?
but if USDT dies, for some reason, you will be left with a bag of USDT instead of 50/50 usdt/usdc
I see some of my stuff is pumping so I gotta go address that now we will talk more about LP soon, maybe later today or tomorrow :)