- I compared Aggressive, Moderate and Conservative range widths on a correlated pair (VVV/USDC, 1Y) against a volatile one (TAO/WETH, 30D).
- VVV/USDC stayed in range most of the time at all three widths. TAO/WETH blew out of almost every range within days.
- Wider ranges earn less fee APR but need far fewer rebalances, and each rebalance locks in impermanent loss.
- My takeaway is that pair choice matters as much as range width. What widths do other liquidity providers here use, and how often do you rebalance?
- Past ranges, not a guarantee of future results. Not financial advice.