Liquidity Book: Strategies Megathread π§΅
#LiquidityBook offers unparalleled levels of versatility, flexibility and customisation for your Liquidity provisioning.
Check out the below thread and dive into the various strategies you can deploy.
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#LiquidityBook offers unparalleled levels of versatility, flexibility and customisation for your Liquidity provisioning.
Check out the below thread and dive into the various strategies you can deploy.
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π Buy Wall
Think that the price found its new support and is bound to increase after every dip?
Set up a Buy Wall. Earn fees and contribute to the price floor while waiting for it to rise.
Think that the price found its new support and is bound to increase after every dip?
Set up a Buy Wall. Earn fees and contribute to the price floor while waiting for it to rise.
π Sell Wall
If you are not feeling so optimistic and are convinced that the price has found its resistance level, this strategy would be perfect for you.
Sell Wall to add resistance + Farm Fees.
If you are not feeling so optimistic and are convinced that the price has found its resistance level, this strategy would be perfect for you.
Sell Wall to add resistance + Farm Fees.
π Gradual Ladder Order Out
Looking to DCA out of your position but don't want to pay fees on swaps?
Not only does Liquidity Book allow you to sell tokens with 0 fees, but it also pays you for your liquidity.
Great to scaling out of illiquid tokens as well.
Looking to DCA out of your position but don't want to pay fees on swaps?
Not only does Liquidity Book allow you to sell tokens with 0 fees, but it also pays you for your liquidity.
Great to scaling out of illiquid tokens as well.
π Gradual Ladder Order In
The only thing better than being paid to sell your crypto is being paid to buy it.
With this strategy, you can DCA on every dip while accumulating swap fees from traders.
The only thing better than being paid to sell your crypto is being paid to buy it.
With this strategy, you can DCA on every dip while accumulating swap fees from traders.
π Spot - Wide
This shape is perfect for benefiting from short-term price volatility.
Thanks to the LB's efficiency, the amount of collected fees is maximised as long assets trade within a specified price range.
This shape is perfect for benefiting from short-term price volatility.
Thanks to the LB's efficiency, the amount of collected fees is maximised as long assets trade within a specified price range.
π Ultra Wide
Want an even more passive approach but still want to access the capital efficiency of the Liquidity Book?
The Ultra Wide strategy is simple yet effective and is perfect for such scenarios. Deploy over a large range and take a passive approach.
Want an even more passive approach but still want to access the capital efficiency of the Liquidity Book?
The Ultra Wide strategy is simple yet effective and is perfect for such scenarios. Deploy over a large range and take a passive approach.
π Spot - 1 Bin Concentration
There is no shape more efficient than this one. It is perfect for pegged and stablecoin pairs but can also be used to place "limit orders" on volatile assets.
There is no shape more efficient than this one. It is perfect for pegged and stablecoin pairs but can also be used to place "limit orders" on volatile assets.
π Ranged Limit Orders
Combining multiple Concentrated Spot positions lets users place limit orders at multiple price points.
Liquidity Providers can even combine buy and sell orders while being paid if their order is filled.
Combining multiple Concentrated Spot positions lets users place limit orders at multiple price points.
Liquidity Providers can even combine buy and sell orders while being paid if their order is filled.
π Concentrated Curve
This approach combines Concentrated Spot and Uniform shapes to achieve the best from both words.
It is still very capital efficient but continues to earn fees even when the price moves in both directions.
This approach combines Concentrated Spot and Uniform shapes to achieve the best from both words.
It is still very capital efficient but continues to earn fees even when the price moves in both directions.
π Spot - Tranche
Max efficiency but with a slightly offset amount of liquidity to capture any volatility and de-risk your concentration.
Setup a Tranche shape by deploying multiple Spot positions.
Max efficiency but with a slightly offset amount of liquidity to capture any volatility and de-risk your concentration.
Setup a Tranche shape by deploying multiple Spot positions.
Deploy any strategy, customise and adapt your strategy on the fly, make your market.
If you want to dive into Liquidity Book but you're unsure where to start out, join us on the Trader Joe Discord tomorrow for a Strategy Workshop session
ποΈ Discord: 9th - 8pm GMT
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If you want to dive into Liquidity Book but you're unsure where to start out, join us on the Trader Joe Discord tomorrow for a Strategy Workshop session
ποΈ Discord: 9th - 8pm GMT
ππ
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