In the darkest of times (in terms of token availability, obviously on the development front we are moving closer than ever to success) we need to stick together and show support, that’s why you may set aside a small portion of your holdings and add them to the token’s liquidity.
You can add only eMAID or only USDC, whatever you choose will benefit the community!
But in the Uniswap, the last add to the pool 10k eMAID a couple hours before. (See on the bottom of the picture.) It’s already more than half an hour since I did my trial, so I would expect it so show up.
As far as I can see, you have allowed access to the smart contract, which is the first step, there is also a second transaction that you need to do (in short, first you had an Allow button, which after the transaction was confirmed turned into a Transfer button - go and repeat the steps if you closed the tab, you won’t have to give Allow a second time).
The Ether you have won’t be enough at the current gas price, Sunday mornings usually drop prices, try it then.
Are there any reasons to not opening a new pool with 1% fee tier? The reason I would like to do it, is to mitigate against divergence loss*). But I found out here, that it is not a problem anymore with the Uniswap v3. Is that right?
*) Also known as impermanent loss, but that is a bit missleading, as the loss for the liquidity provider is actually permanent in most cases.
The only reason such a pool hasn’t been opened that I can think of is that the cost is around $400 for the transaction… In UniSwap v.4 this will be significantly cheaper soon:
First it will ask you permission for Uniswap contract to use your allowance. This does not add any liquidity, just permission to take it from your wallet. Next transaction it will add it to the liquidity. I recommend to do this on saturday or sunday, gas prices should be better.
Let’s say I add liquidity, like 2000 MAID spread in between 0,23 - 0,27 USDC. Then buying happens and price moves over my range to 0,30 USDC.
Is providing liquidity equal to putting up a sell order to that range? Is the liquidity I provided in eMAID converted into USDC? Can I now remove the liquidity I provided in USDC?
Someone correct me if I’m wrong, but as far as I know you’re correct. It will spread the amount of liquidity you add over the price range. Say you add 2000 emaid from $0,20 up to $0,30 it will add 200 emaid as “sell” at $0,20, $0,21 all the way to $0,29.
When price moves above $0,29 that means the entire liquidity has been grabbed and your 2000 emaid is now converted in full to USDC and placed as “buy” in the exact same range.
Removing the liquidity after will result in it ending up as a limit sell order, but I wouldn’t advice it as earning the 0,3% will not outweigh the entry and exit fees of your liquidity.
Providing liquidity is (in a vacuum) only profitable if prices tends to bounce up and down a range for a while and a lot of volume happens within that range.
In what ballpark these fees are in general? Are there cheaper alternatives for making a limit order? (Is this the way 1inch limit orders work under the hood?)
It’s not like that, because it’s already sold. The exact description is that the removal of liquidity reduces the depth of the market, many sites measure this indicator:
Limited orders in 1inch are free to the person making them, the person taking them pays the fees.
In fact, the opposite is surprising - giving all of your money to someone else and hoping that he will keep it safe for you just to save a few $ on transactions…
That’s right, but once the price is already above yours, taking liquidity out is not selling - you’re not influencing the Price, you’re influencing the Depth of the market.
