Raydium.io Concentrated Liquidity Mining Masterclass – Metrix Finance Tutorial
https://www.youtube.com/watch?v=fC-MY451W68
Transcript:
We’re going to be doing a full radium deep dive and how you can use metrix.finance to your advantage to find the best radium concentrated liquidity pools on the Solana network and how you can simulate potential returns and make sure that you’re actually getting what you estimate. Let’s go and hop right in. The first page that we’re going to start off on is obviously metrix.finance. This is a tool that we’re going to be using. It’s an all-in-one tool. We don’t need to use anything else. And since we don’t have any liquidity pool to simulate quite yet, we need to head into the discover section. The discover section is where we’re
going to be able to identify different concentrated liquidity pools. So once we’re here, I’m going to start off by selecting radium as my exchange and then selecting Solana as my network. And then from here, it’s going to list out every single radium pool within the parameters that I choose.
Currently, there are 61 different pools over here. And obviously, we can scroll through all 61 of these pools, kind of identify what we want to see. But me personally, I don’t want to look through 61 different pools. So I’m going to start to narrow things down by using the filters feature on Metrix Finance.
These filters are going to allow us to identify number one specific assets, but number two different parameters like minimum TBL, minimum fees, fee to TBL ratio, average APR, all that type of stuff. So I’m going to start off by diving into this pool filter right here. My first asset, I want to put under must include soul.
That’s basically saying I want to look at pools that definitely have soul in them, or if I don’t want to just look at pools that have soul in them, I could look at stuff that has soul in it, USDC in it, as well as let’s just say radium in it. And it’s going to show me pools that include soul, include USDC in it, as well as let’s just say Radium in it.
And this is going to show me pools that include Sol, include USDC, and include Ray, but don’t necessarily include all of those assets. Like for example, we see USDC, USDT over here, and Sol, Jito, Sol. So it’s just kind of showing us those ones. Whereas if we want to look for something specific, we can say must include Sol and second asset as USDC. That’s going to show us all the Sol to USDC pools.
But I don’t care to go that in depth, so I’m just going to do must include Sol, because typically in bull markets, I like to do correlated pairs. That means I like to pair Sol with assets that are also altcoins that follow the price of Sol. I go up when Sol goes up and go down when Sol goes down, basically.
But I’m also open to stuff like Sol USDC if it has a pretty decent APR. And in this scenario, it shows Sol USDC has an average APR of 140%, which we will dive into a little bit later. But I’m going to put my average APR higher than 50% because I want to look for stuff that’s doing good.
And it looks like we only scratched off about seven pools right there by putting the average APR at 50%. So right off the bat, you can see there’s a lot of really, really good returns over on Radium right now. Additionally, I see some meme coins like Slurf in there, which is completely fine, but I don’t want to necessarily deploy into meme coins.
So I’m just going to kind of visually avoid those and just know in my head, Hey, I probably don’t want to deploy into that. I want to look at stuff that has a lower volatility than 20%. So I’m going to go ahead and put my price volatility at a lower than 20% over here.
That’s going to narrow it down to about 26 different pools. And then over here, we over this fee to tbl ratio and i’m seeing a lot of these are roughly 0.28 we have over here 0.1 over here 0.45 so i’m going to put my minimum at 0.1 this basically says that hey the average 24 hour fees over this 30-day calculation range need to make up for at least 0.
1 of the overall tbl on a daily basis essentially so that way we can kind of narrow it down to some even better pools. And now we got 22 pools shown on this list. That’s not too bad. That’s about two pages with a couple excess ones. I can start to go and look through these. So obviously, there’s going to be the stuff like sole USDC, sole USDT.
I’m not going to dive into those quite yet, but I am going to favorite one. And when I do sort by that average APR, you can see I have stuff like 2700 over here which is most likely not accurate it’s just the data source that we pull from is directly from radium occasionally it will return data just like that there is stuff like sold a wormhole token which is showing 590 i am going to put my average apr lower than 600 basically so that way we can kind of filter those top two out. I’m gonna favorite sold to W
because Wormhole actually has a use case. It’s a very, very good platform and they have a lot of different products and I’d be interested to see kind of how W token or Wormhole token plays into that ecosystem. So I’m gonna hit the favorite button and it’s gonna bring it over here to favorited pools.
Additionally, I’m gonna scroll down and I’m gonna start to find stuff that I actually want to include in my portfolio. I see a sold to WBTC pool that has 280% return. That’s really good. I also see this sold to PYTH pool doing roughly 250% return, which also looks really good. And I don’t know if you guys watch my videos over on my personal channel, but I personally made over $12,000 from sold to PYTH, this liquidity pool, which is over a 2x return on my initial deposit capital.
So I’m completely fine being in PYTH token, basically. And then I do see sold to USDC. this is doing roughly 192 percent over here i’m going to move on into the second page i see another sold to usdt pool i am not going to favor this one because there is a tool on metrix.finance that we can use to show us the best pool with sold to a stable coin whether it’s usdt whether it’s usdc whether it’s a different fee tier we can see all those in one dashboard and we’ll go into that later to make sure that we’ve identified the best possible return.
Additionally, I’m going to see some stuff like Sol Miro. I’m going to see stuff like Sol Zeus. If this is stuff that I really want to include in my portfolio, I’m going to go ahead and just favorite it. So that way I can look into it later. Sol Zeus looks interesting. There’s also Sol to JTO. Keep in mind, JTO is Jito token,, made with the JITO sole platform, basically.
And there’s also a JOOPS sole position down here. So I’m just going to go ahead and favorite those ones. And now I can head over to favorited pools, and I only have seven to look through. And I have seven to go and do a deep dive into and actually start to simulate. And off the bat, I see two different things. Number one, I see this sold to W pool has a 1% fee to TVL ratio.
That means that the fees make up for about 1% of the overall TVL. And in this scenario, the TVL is roughly $100,000 fees are about 1000 bucks. And then over here on Zeus, the fees are roughly 1.5k in the past 24 hours, and the overall TVL is roughly $125,000. So that’s not too bad.
These are two pools that I really just want to dive right into. These are the ones that I want to start with, because these seem to be the best performing ones. So I’m going to open those up in a new tab and just wait for that data to load up. Obviously, since we do pull in a lot of data directly from the blockchain, it will take maybe five to 10 seconds to load up that pair.
But after we’re here, we can start to adjust some different parameters to make sure that we are estimating accurate returns. And off the bat, I’m going to notice that I am looking at how many souls equal one wormhole token, which is not a bad thing to look at, right? Because soul is a pretty decent quote asset to rely on.
But at the same time, I don’t like looking at these painful decimals over here. So I usually like to flip the pair to look at how many wormhole tokens equal one soul. That way I can actually look at whole numbers. So I’m going to do that. Now that I’m here, I’m going to start to find my range, which if you guys watch the channel, typically I’m going to put my max price at the 30 day high and my min price at the 30 day low. And I’m going to put my max price at the 30-day high and my min price at the 30-day low and I’m going to go from there basically that’s minus 26 plus 16 one thing you’ll notice
is the price has started to trend upwards now remember when the price is trending upwards that means that the base asset is doing better which is soul in this scenario so soul is doing better than wormhole whereas when the price is trending downwards like this period over here that means that the quote asset is doing better which is worm wormhole token. So we want to keep that in mind.
There are some periods where wormhole does really good and there’s some periods where sold is really good. So we need to factor that into our analysis. I’m going to go ahead and bring up that max price because off the bat, I know, hey, chances are we’re going to go back up to these price points that we saw over here and even over here. I probably want to have that at a max price of 300.
And I’m getting that number from the personal indicator in my head that says, Hey, if the price moves up, like, let’s just say 241 to like 280 in one day, we want to make sure that we can encapsulate that. So 241 to 280, boom, that would put us out of range if we had it at this 30 day high. But in the scenario that we have it a little bit higher than the 30 day high at around 300, that’s’s gonna give us some buffer room and not put us out of range instantly basically remember I do have a 30-day time frame for my liquidity pools, which is why I’m using a 30-day calculation range
But you can apply the same exact logic to 14 days 7 days so on and so forth basically now my min price I’m gonna go ahead and adjust based on the amount of assets that I want to have in this pool now since both wormhole And so are doing pretty good. I want to stay around the 50-50 ratio.
I want to have either 55% of one asset max, or in my opinion, 50% right on the dot of each asset. But that’s going to depend on kind of how wide we have to go. So if I go right over here, that’s going to get us about 50% of each asset. But you’ll notice just a couple days ago, roughly a week, I should say, actually, we would be out of range over here for a short period of time. So I want to make sure that I can encapsulate that.
I’ll bring the price down just a little bit to about 185. So now we have 185 to 300. That’s going to give us about 55% wormhole token and 45% soul. Now, personally, me, I am not too upset about this because historically altcoins do better and the lower the market cap, the asset is. And as long as that asset has high utility, it typically does do better than the original asset so for example i expect wormhole token to do better this bull run than soul does this bull run basically so i’d want to wait a little bit more towards that asset uh but again if i’m like super confident i would do like 60 65 but right now
looking at the past 30 days looks like they both have a period where they do well so i’m just not going to completely favor one asset over the other asset essentially now some things that we need to address it’s showing that the apr over here is 2300 what we need to do is we need to bring this current price over to the top of liquidity distribution that’s going to show us a more accurate estimate additionally we need to go down into the volume history and notice that hey the volume has been declining over the past 30
days recently the past four days it has been the past 30 days. Recently, the past four days, it has been consistent. So we want to only use the past four days of volume when simulating potential returns. And when we do that, we’re coming out to roughly 285%. Now, this should be relatively accurate, and this is going to be a pretty decent return.
Now, one thing that I’m going to go ahead and notice is when I go ahead and look at the 30-day chart, you’ll notice that correlation is at roughly 58% over here, which is decent, but it’s not completely correlated.
look at the 30-day chart, you’ll notice that correlation is at roughly 58% over here, which is decent, but it’s not completely correlated. So we might want to consider bringing our range outwards a little bit, having maybe 310 on the top and maybe like 175 on the bottom. That keeps us at about 50-50, but also it gives us a broader range. And if we go ahead and adjust back to four days of a calculation range, we’re getting about 245%. So we’re shaving off roughly 20% on the overall.
But we have a bit broader of a range. We’re going to minimize our impermanent loss. And we’re gonna have more time to make decisions, which in my opinion is a pretty decent trade off. So this is the range that I would personally use for something like sold to W token. Now remember how I said earlier in the video that there is a feature that’s going to allow us to look at every single pair to make sure that we’re getting the best possible return, we head back over the simulate page and we go right into pair. What we can do is we could select radium and specifically
look at radium pools basically. So if we do soul over here and then W token over here, we could go ahead and type in our range, which remember we determined that was going to be 175 to 310. So we’ll throw that range in 175 to 310. and if we go ahead and we hit this similar assets thing It’s gonna show us all assets that are similar like if there’s wrapped versions of soul or something like that It’s gonna include those on the list But as you can see, there is only one position over on radium Remember we do want to adjust current price to peak of distribution
So about 237 is what we’ll use and then we’re gonna adjust that calculation range to four days That’s gonna show about 245 exactly what we’re seeing over on the other page But then if we want to include orca pools on here as well and kind of compare it to Orca, we can hit Orca and that’s going to show us all the Orca pools.
Now in this scenario, it looks like we’re getting roughly 74% over on this Orca pool and roughly 72% over on this Orca pool. So in this scenario, it’s way better to be on Radium because Radium has the higher return. The only thing I’m going to mention is Radium does have a TVL of roughly $110,000 compared to this one on orca has $940,000.
So if I’m deploying a couple thousand dollars, even five, 10, $20,000, probably want to be over on radium. If I’m deploying past that, well, then I definitely want to be over on orca. And that’s simply because it has higher liquidity and I’m not going to cause as much dilution in the overall pool. I’m going to get back into it. I want to go and show you another pool, something like sold to WBTC, basically.
So we’re going to pull this up over on Metrix.Finance on the simulation page. The first thing I want to go and do is, once again, go back to the strategy of 30-day high and 30-day low. And what you’re going to see is we have big spikes upwards. That essentially means we have periods where Bitcoin does really, really well because in this scenario, Bitcoin is the base asset.
Sol is the quote asset. So right bitcoin did really well and then soul had a little bit of a run bitcoin did well and then sold a little bit of a run or a long run i should say and then bitcoin did well and it’s slowly trending downwards which means more recently soul has been outperforming a bitcoin we’re gonna factor that into our analysis and this 30-day high low range basically is giving us 85% Bitcoin 15% soul Which means that we are nearly out of range.
So do keep that in mind What I’m gonna do is I’m gonna leave this max price at roughly 500 and I’m gonna start to adjust this min price until I Get a proper ratio now in this scenario since recently soul is doing better. I want to wait more towards soul basically So I want to have about 60% But if I put my price all the way down here, that’s pretty far out.
So what I’m going to do is I’m going to actually bring that up to something like 350. Keep in mind, current price is about 410. And then I’m going to adjust my max price until I get to that proper ratio. So I’m going to just bring this down a little bit. That’s going to get me roughly 53% sole. I don’t want to bring it down too much in this scenario, this is probably good. So now I need to go back to adjusting that mint price.
And it’s all about just kind of playing with things until you get the right ratio. And just like that, that gets us 60-40 over here, more of a weight to sole, and it is a relatively broad range. So we’re not just going to go out of range in a heartbeat, basically. And then from there, we can start to look at liquidity distribution as well as volume history to see the accurate return.
Now, it looks like I’m at a pretty good point in liquidity distribution. There’s a lot of liquidity right here. There’s not as much over here and there’s not as much over here because that means that this APR is going to be more accurate, but we need to scroll down to volume.
And as you can see, there was some big volume over here and now we’re not doing nearly as much. So I’m going to adjust this to include about five days of volume because these five days right here look relatively consistent. And if we use that, we go from getting roughly 390% to roughly 140%, which is a pretty reasonable return, especially for something like Sol Bitcoin.
And it’s basically printing. So what I’m going to do is I’m going to head back over to this pair function, and I’m just going to swap this out for WBTC as well as Sol. And I’m going to throw in my range here, which was 335 to 475. Basically, I’m going to adjust that calculation range to five, make sure current price is good and make sure similar assets is checked.
In this scenario, you could see that radium wins once again, but the TVL is a little bit lower. And I do think over time, more and more TVL will flow into radium. But in this scenario, 160k, you can deploy probably up to 20 $30,000 without doing too much dilution and you get about 140% compared to the 40% that you would get over on orca in this liquidity pool so that’s going to wrap up today’s master class on radium and actually finding and simulating those potential returns for the radium concentrated liquidity pools
