Uniswap V3 has arrived, and with it has come new features and capabilities for swappers — particularly for liquidity providers. Now, Flipside Crypto has a new tool to help those LPs know how much they can expect to earn via Uniswap V3 fees.
If you’ve been following the release of V3, you may already know about the new features, including concentrated liquidity and multiple fee tiers, designed specifically for LPs. These allow users to provide liquidity with up to 4000x capital efficiency relative to Uniswap v2, earn higher returns on their capital, and significantly increase risk exposure to their favorite assets while reducing downside risk.
Perhaps most interestingly, however, Uniswap V3 allows LPs to trade assets by adding liquidity to a price range entirely above or below market price. This allows them to impose a fee-earning limit executing along a smooth curve. And while this new power offers plenty of potential for users, it’s been hard for LPs to forecast how much they can earn by collecting Uniswap V3 fees.
With this new tool, liquidity providers can better understand the fees they can expect to earn from Uniswap V3. All you need to do is change the parameters of the calculator to reflect the bottom and upper limit of a potential liquidity position and tell the calculator how much liquidity you plan to add.
You’ll receive a simplified forecast for how much you can expect to earn every 24 hours. It also allows you to see how your investment would fair in several different pools.
Check it out and start testing different strategies!