Combining Technical Analysis & Concentrated Liquidity

Uniswap v3 has opened a new era in crypto ecosystem as it enabled DeFi investors to specify and set the target price ranges for their money to be used in the liquidity bins. In this way, the liquidity provided by a person does not drop below a certain level but also gets traded for its pair when the price gets higher than the range.

This groundbreaking integration has been actively used by many investors for both highly risky coins such as meme coin pools and for long-term investment bags such as WBTC - WETH pools in Uniswap. Also, you can utilize the pools' additional incentive rewards to maksimize your return of investment while your money is actively working.

If you are into crypto and technical analysis, the combination of DeFi % TA may bring you lots of opportunities on several Layer 1 / Layer 2 projects. Let me show you some examples from my side.

Liquidity & Rewarded Pools

The target of our liquidity is to make better returns from the risky liquidity positions. Thus, the stablecoin pools may not give what we expect in this strategy. However, they can also be a good way to get 15% - 20% APR for your stable investment.

We are looking for pools that are incentivized with native tokens or the coins of a chain.

zkSync Incentives & Opportunities

Here is an example from PancakeSwap on ZkSync Era.

As PancakeSwap is not one of the hottest projects on zkSync, there is limited liquidity and the rewards are shared among a small group of investors.

Muliplier shows that we are going to receive a decent return thanks to the incentives on this pool. The other pools' multiplier rates are not even half of this pool.

145% APR is a great example of the limited liquidity but high reward change on Pancake. As it is a solid project, I'm enjoying the security of the contract, the airdrop farm on Zksync and possible earnings from this pool with my specific range.

After looking at ETH / USDC chart on TradingView, I thought that the $1610+ (close and open level on the daily chart) and $1650 might be a nice range to have some decent rewards with the very limited range of ETH / USDC pair.

In 40 mins, the rewards started to come for the $22 liquidity pool. The most important part of this investment is the reward tokens of Cake. While we are in the consolidation, the price may not look juicy but the performance of Pancake will be strong in the bull market. So, cheaper Cake in consolidation is a good advantage.

• ZkSync Airdrop farming
• ETH / USDC / Cake Rewards
• Chance to buy ETH lower

SUI Incentives on "Ghost" Chain

For SUI, I do not take too much risk because there is lots of sell pressure on the token due to the unlocked tokens and bad reputation.

As the price of SUI has been going lower in a trend line, there might be another touch to the descending line.

Basically, around 20x leverage on SUI is a promising rate because the team is trying to keep the price stable at around 40 cents. Also, the cheap transactions and more incentives on the chain are good chances for me while there is still not much hype on SUI.

SUI has not seen any bull market and it has the potential to skyrocket in the bull run. With this expectation, I try to farm rewards with limited risk on the SUI blockchain.

Are you interested in Concentrated Liquidity Pools?
Share your experience below 👇

Hive On ✌🏼

Posted Using LeoFinance Alpha