Aperture Finance’s UniV3 LP private beta started a couple of days ago. I’m participating for the airdrop and my curiosity. About 16 hours ago, I opened my first auto close position by single-siding 1000 USDC.E in the 5bp ETH-USDC.E pool on Arbitrum between 1822.6 and 1881.8 while ETH was at 1882.646. If you are a reader of my UniV3 book, you’ll recognize this is the beginning setup of my favorite strategy1 (chapter 13).
The next screen shows the deployed position. The two buttons in the red boxes are Aperture Finance’s product features. We’ll ignore the Rebalance button for now and focus on Auto-Compound.
Clicking on the Auto-Compound button brings up a small widget that allows us to set when to claim the fees and deposit them in the pool. I’d like to auto-compound whenever fees > $50 and as long as gas is < $0.3. But the lowest value for Maximum Gas Fee is $0.6009, so I cannot set it at $0.3. So I went with it. This means Aperture’s smart contract will auto-compound fees as soon as fees > $50 and as long as gas < $0.6.
After toggling on Auto-Compound, if we move the cursor down a bit, we’ll see these two buttons:
We’ll ignore Automated Rebalance and focus on Prescheduled Position Close since the strategy I’m using here doesn’t involve rebalancing but require closing the position once price moves too far away from the range boundaries.
Clicking on Prescheduled Position Close brings up the following screen where we can set up a trigger for auto-closing the position. For example, I want to close the position when ETH drops below 1812.614, 10 dollars below the lower limit of my price range. (See my book for reasons and full recipe of the strategy.)
If you want to set up a second trigger, just click on Prescheduled Position Close again.
The following screen shows the position metrics. Immediately, we notice the Liquidity value reported on Aperture’s UI is a bit off: $998.794 vs. $1001.38 as reported on revert finance. Aperture reported the USDC.E amount correctly (999.999), so I don’t know why the Liquidity value was off. I’m going to close the position and re-provide because ETH shot up (and it shot up a few hours after I opened the position😭) and looks like won’t fall into my range any time soon. But the nice thing is that I didn’t incur capital loss except gas, which is pretty cheap. Once again, you can read the full description of my favorite strategy in chapter 13 of my book.
The following screens show the UI when pulling liquidity. First we get a config screen where we can choose how much liquidity to pull and what token we want to receive back (for example, ETH or WETH). Notice the dollar value under Projected Amount to Receive is inaccurate, while the other numbers are correct. Next we get a summary screen, and upon clicking Conform Remove Liquidity, your Meta Mask will pop up, asking you to sign the tx.
Bug
When I tried to provide 1000 USDC.e with a tiny bit (< $2) of ETH, Aperture’s contract only sent 295.116 USDC.e to the pool. The rest 705 USDC.e was left in my wallet.
You wouldn’t know this until after your position is deployed since the summary/confirmation page where you click the open position button show the correct and intended number. From what I gathered in their discord, this has to do with how/where their contract is sourcing ETH price. The same bug didn’t occur when I provided 1000 USDC.e and 0 ETH. So before they fix the bug, don’t open almost single-sided (99-1) positions, and stick with 100% single-sided positions.
Risks
After connecting my wallet to their site, the first thing was to approve a transaction that gave their smart contract full control of the UniV3 NFTs (current and future) on my wallet. It’s kinda of scary because I don’t know the team and haven’t examined their smart contract. So if you are also participating, make sure use a burner wallet and limit the amount of capital, although their docs says bigger size will likely get more airdrop. Also, they don’t support all UniV3 pairs. For example, STG-ETH pair is not supported. I’ll just stick to ETH-USDC.e, ETH-USDC, and ETH-USDT pairs.
How to Join the Private Beta
The private beta is still open, and in order to join, you’d need a referrer and get whitelisted. Past experience with UniV3 LP will likely get you whitelisted as the team is looking for feedback on their products from UniV3 LPers. In fact, giving feedback is one criterion to qualify for the airdrop. You can learn the details of the private beta and airdrop here. You can put me down as your referrer (coindataschool@gmail.com). If you bought my UniV3 book and have been LPing, mention it too to demonstrate you’re a serious and experienced UniV3 LPer.
Websites:
My favorite strategy has 2 arms. Arm 1 aims for a 3-digit yield and arm2 aims for above 20% yield. It has done well for me and my book readers in the past 3 months. For example, at the moment, my arm 1 is in play and yielding 35% for the past 83 days.