Brokkr V3 Liquidity Management Strategies

Brokkr Finance
3 min readNov 28, 2023

Our brand new one-click V3 liquidity management strategies will launch soon. Our aim? To simplify and optimize your experience in concentrated liquidity DEXs like UniswapV3 and Camelot.

The current landscape

it’s worth noting the immense scale of liquidity in these pools. UniswapV3 alone boasts a staggering $3.2 billion in its V3 pools, overshadowing the $1.3 billion in its V2 pools. However, V3 pools demand active management to stay profitable, a challenge many liquidity providers face, often leading to losses. This is where our strategies shine, offering a seamless, automated solution to LP effectively.

Brokkr V3 Liquidity Management Strategies

With our strategies, we commit to transparency, efficiency, and long-term performance. Here’s what sets us apart:

〽️Transparency & Benchmarking

We believe in full clarity. Unlike others, we don’t focus solely on APR, we prioritize the final result. High APRs can be misleading, as they don’t always equate to profitable outcomes. We tested strategies with 300% APR but -80% on the overall result.

We provide comprehensive insights into both current and historical performances, benchmarking them against the simple strategy of holding assets — HODL.

🧪Extensive backtesting

Every strategy undergoes rigorous testing across various market conditions and timeframes to understand how they work in different situations. For instance, on the Arbitrum ETH-USDC 0.05% pool, our top strategy outperformed HODL by 16% over two years.

🔭 Long-term strategies

Long-term strategies are optimized for the overall results instead of high APR.

1. Adaptive Strategy 📊

Adaptive strategy dynamically adjusts the range based on price movements, maintaining a narrower range during stable periods and widening during volatility. It limits frequent rebalancing, thereby reducing impermanent loss.

Arbitrum, ETH-USDC 0.05%, 10.01.2022–22.11.2023, +16% vs. HODL

Adaptive strategy, backtesting results, ETH-USDC 0.05%, 10.1.2022–22.11.2023, +16% vs. HODL

2. Block strategy 🔲

Block strategy divides a large position into multiple smaller ranges. In the current setup, the blocks are wide to suit long-term holdings. These blocks can withstand significant price shifts while still yielding solid APRs, with less frequent and smaller rebalances.

Arbitrum, ETH-USDC 0.05%, 10.01.2022–21.11.2023, +15% vs. HODL

Block strategy, backtesting results, ETH-USDC 0.05%, 10.1.2022–21.11.2023, +15% vs. HODL

📈📉 Market Betting Strategies — Short term

By providing liquidity asymmetrically, users can bet on expected price movement. These strategies are for those who want to leverage price movement while LPing.

1. ETH Bull Expectation 🐂

Made for those bullish on Ethereum. This strategy focuses on providing liquidity primarily in ETH. It adapts with every 5% price increase, maintaining its bullish stance.

❗️It’s NOT for longer downtrends.

2. ETH Bear Expectation 🐻

Suited for a bearish outlook on Ethereum, it predominantly provides liquidity in USDC, catering to expectations of a price decrease.

If you expect the ETH price to decrease, this lets you provide liquidity mostly in $USDC while getting the APY from the pool.

❗️It’s NOT for longer uptrends.

A Word of Caution

Our strategies, though meticulously crafted from historical data, are not immune to the unpredictability of markets. We continually monitor and refine them, but it’s crucial to remember that past performance is not a guarantee of future results.

Follow Brokkr on:
🌎 BRO Website
🐦 BRO Twitter
🎮 BRO Discord

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