Uniswap V3 vs. Grid Bot

Question

Hi folks,

just want to know you opinion / start a conversation. Is Liquidity Mining with Uniswap V3 comparable to Grid Bots?  
Why I think it is: Both thinks require you to set a top and a bottom border in which the price (e.g. WBTC/ETH) fluctuates.

Both have a similar mechanism when the price breaks below the bottom border => you are left with the worst performing asset. The other one is from collecting Fees generated by other market participants.

Do you think its fair to compare these two in regards to setup, risk, APR??

I myself tried out Uniswap V3 during the recent slump, which conveniently brought the ETH Gas fee down also and made Uniswap useable for me. (yes, i could have tested it on e.g. polygon I know...)

What's your take on it?  


cheers   
kazzle

Answer 1

It is comparable, but there are some differences depending on how you structure your Uiswap range orders.

Setting up a grid bot to add limit orders at price +/- 1% is not the same as creating a Uniswap v3 range order from -1% to +1%. The reason for that is that a range order in uni v3 is like a ton of smaller equally-sized buy & sell limit orders spread throughout the whole range. These smaller limit orders flip in the opposite direction once crossed - e.g. the smaller buy limit flips to a sell limit once price passes through it.

The closest equivalent on Uiswap would be to create 2 very tight range orders one from -1% to -1.01% and an upper range order from +1% to +1.01%. Again this is not identical to the limit orders set by a grid bot because these range orders will flip to the other side.

You could manually remove the range orders once flipped to have something that closely resembles a native limit order.

Answer 2

In time, sooner than you think, you'll see that kaddex will stand shoulder to shoulder with uniswap ... so in time, let's see which dex will take the lead, because we are in def need of a good one

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