Full PancakeSwap v3 Concentrated Liquidity Masterclass – Metrix Finance Tutorial
https://www.youtube.com/watch?v=t9jwdjZn6Qg
Transcript:
Today we’re going to be diving deep into PancakeSwap and the Binance Smart Chain Network as well as the Ethereum Network and some of the other networks that PancakeSwap supports. This is going to be a full crash course going over from start to finish exactly how to find the liquidity pools, how to simulate potential returns for those liquidity pools, how to make sure you’re getting the best possible return, and then of course diving into actually opening up the pools and potentially even tracking them.
So let’s dive right in. And if you guys don’t already know who I am, I’m the founder of Metrix Finance. I’m a liquidity provider myself. And our goal with Metrix Finance is to make a tool that liquidity providers will actually use and actually find immense benefit in. So we like to say for liquidity providers by liquidity providers.
There’s a lot of tools out there, but a lot of them don’t actually tailor to liquidity providers like myself or like others in the space, not for retail users they’re just very very hard to use and Metrix Finance aims to solve that problem and if you like what we’re doing make sure you have a like subscribe notifications turned on and we’re gonna dive right in starting on the Metrix Finance website I’m gonna go right into the app the first thing I’m going to do is head over to the Discover page because remember we want to look at some pancake swap liquidity pools I’m going to solely select pancake swap over here and I’m also going to select every single
network that pancake swap is on because personally I have no preference when it comes to networks obviously I don’t want to deploy into super random stuff but for the most part pancake swap supports some pretty large networks now with that being said currently metrics finance does not support aptos op b and b zk sync era linea or zk evm but if you guys do want us to support those chains make sure to comment down below and we’ll be happy to look into actually supporting those we’re going to be taking a look at ethereum arbitrum base and bnb chain and you’re
going to see off the bat a lot of these pools are on the binance smart chain network and that’s simply due to the fact that pancake swap is native to the binance smart chain network and has 1.8 billion dollars in tvl on bsc and the second highest TVL Network for pancake swap is ethereum with only 75 million dollars in TVL with that being said once I’m on here we obviously are going to be sorting by TVL but I’m going to go ahead and put some filters in personally I don’t want to look at super low APR stuff so what I’m going to do is go to this little filter icon which
I will mention is a metrics Pro feature but if you guys do not have metrics Pro, there’s a couple things that you could do number one You can just avoid using the filter because keep in mind discovery is completely free or you can head over to X and follow us On X because we are always doing giveaways on X for free metrics Pro licenses, especially for one-year ones So if you guys want to lock in a free year of metrics pro I recommend you follow us over on X but realistically you could just kind of factor out the low APR stuff in your head and just kind of skip past it.
You don’t really need this. This just makes your life easier. And that’s what metrics pro is for. But I’m going to make sure that the APR is higher than 35%. And I am going to be reasonable here, mainly because the market is going down a little bit. And typically, when the market does go down a little bit, well, APRs tend to go a little bit lower.
And I’m going to want to make sure that the APR is lower than 350%. And the reason why I put that filter in is because a lot of the times if we do not have that filter in, we will be shown a lot of stuff that is super high APR.
But a lot of the times it could be a data glitch with the data source that we pull from, which is directly from PancakeSwap. Or sometimes it could just be random tokens that we know absolutely nothing about. Like for example, this Y to WBNB, I am not going to deploy my hard earned capital into that pool. So I’m just going to put lower than 350% because typically that filters out a lot of the noise, I would say.
Additionally, since the market has been going down recently, I’m going to want to adjust this calculation range from 30 days to about seven days because I want to look at the past week’s worth of data. Off the bat, you’re going to see the best pool that we have on here, 315%.
But remember, we haven’t even dove into the woods and adjusted the range or anything along those lines. I’m also going to head over to this TVL and look at at least $1 million. And the reason why I’m going to do that is because I don’t want to look for low TVL stuff. I want to look for more blue chip stuff, stuff that actually has intrinsic value. So I’m also going to be doing some due diligence on some of these assets.
But what I’m going to do is I’m going to head into this pool filter, and I’m going to type in ETH, mainly because I want to look at pools that have ETH in them. As you can see, this one is ETH to USDT. This has an average APR of about 50%. It’s not too bad in my personal opinion. I’m just going to favorite that one.
I’m also just going to dive into this page because there are a lot of opportunities on this page. There’s stuff like Pendle paired with WBNB, 195%. That looks pretty interesting. We could keep on going down and keep in mind, there’s only about like 18 pools right here. So it’s not a lot to browse through.
And that’s because we use those filters. We filtered out all that noise over there. There’s also BNB to BUSD. It’s about 70%, but I will say this is one that I would be weary about deploying into, mainly because they are discontinuing BUSD, so probably actually not something I want to deploy into, even though it does have a pretty high APR. Going further, there’s an ETH USDT that we just looked at. There is a SOL BNB.
I like Solana tokens, so I’m just going gonna go ahead and favorite that one as well um and then there’s another ethereum one over here and i’m just gonna kind of ignore that one because it is a lower return and then i’m gonna start to take off my filters right so i’m gonna take off the higher than because i want to start to browse through some other ones now we got 48 pools so there will be some noise keep that in mind there’s an xrp one obviously this is going to be binance pegged xrp it’s going to be collateralized by actual XRP, but it’s not the real XRP because normal XRP is native to its own
network. So I’m just going to go ahead and favorite that one, look into it a little bit later. And I’m going to keep on going down the list. If we like Cardano, we can look at Cardano. I’m personally not a huge fan of the Cardano ecosystem. I also haven’t done a ton of research into it. So I’m just going to go ahead and skip past it. There’s some BNB to USDT showing about a 30% APR. I am going to bookmark this one.
Remember, avoiding that BUSD, but bookmarking the USDT one. However, I also see Ethereum to BNB. I see Ethereum to Bitcoin B. Those ones I like, even though the APR isn’t super high. Once we get in there and we start to narrow down our range, we’re going to see some pretty solid returns in my personal opinion. I think so, at least.
We’re just going to have to dive in. And I’m almost done browsing, but as you can see, we’re starting to get into some of that stuff that has lower APR. So I don’t really care too much about that because this is all sub 10%. I’m going to dive into the favorite pool section. As you can see, we got a lot of opportunities. And off the bat, I’m just going to start narrowing down.
If I have multiple pools of one thing, if I have ETH, USDT, and ETH, USDC, I’m just going to dive in and see what I can narrow down. In this scenario, all of these are unique, which is great. So let’s start with the Pindle one, right? Because this is more of a volatile asset. I want to dive in, see what type of returns I can actually get. What I like to do usually is I like to bring that max price to the very, very top of the 30-day period. And I like to bring that min price to the very, very top of the 30-day period.
And I like to bring that min price to the very, very bottom of that 30-day period. That gives me a range of 79 to 140. One thing I’m going to mention is you could see we’re about 83% Pindle, which is a little bit risky considering we’re about to go out of range when we look at this chart right over here. So I’m going to bring up my max price to balance out that ratio.
We’ll bring that up to about 170. The reason why 170 is because i’m looking at the recent jump and i’m seeing how much this chart can move in the time span of just a couple days and if we were to move just this much in the time span of a couple days we’re gonna go right out of range so maybe we wanna bring that max price up to like 180 really have some buffer room there because personally i’m a more conservative investor and this chart represents how many pendle equal one b and.
So as the chart is trending up, that means that BNB is the asset that’s doing better. So I’m going to want to have a good amount of BNB in this position. I’m going to bring up this min price until I could get about 55% BNB because recently BNB is the asset that’s doing better. And as you can see, that’s going to give me about 55 b b 45 pendle and about 135 apr now with that being said we are relatively close to going out of range on this pool you know one big move for pendle and b and b staying stagnant could completely wreck us
so i am going to adjust this probably until i get about 50 b and b just because that’s going to give me a little bit more buffer room and not allow me to get instantly kicked out of range i’m going to go with the range of 90 to 180. it is in that ballpark of 55 b b but it is about 50 b which personally i am fine with and then the next thing i’m going to head into is liquidity distribution right now the current price is at the top of liquidity distribution so it’s completely fine there no need to make adjustments right there or anything like
that in my personal opinion i’m also going to scroll down and start to look at volume you can see recently volume has completely spiked but all the way back here volume was not good whatsoever so I’m going to start to zoom in and zoom out and what I mean by that I’m going to go to my calculation range I’m going to look at APR and I’m going to start with one day using one day of data to annualize APR 170 percent two days 245 percent three days 250 percent four days it starts to go down 200 and if we go to seven days
about 140 14 days about 110 28 days about 110 30 days about 115. so worst case scenario we’re getting about 110 here but if we hop in right now we’re going to be getting about i want to say 200 or so because look at that volume chart that volume chart is really really nice we see a huge spike right over here and then the next day another huge spike and then the next day it does start to die down so best case about 200 worst case about 110 i’m pretty happy with that range so i would go ahead and deploy into this
pool now that i’ve done my analysis quick little trick if you want to see the actual return because keep in mind we’re just using normal price points we’re not actually using the exact tick marks like you will have to use when you go to deploy on pancake swap we can hit this match ticks button that will find the closest tick and as you can see it’s about 118 apr so we’ll adjust a little bit but that just finds the closest tick and puts the max price and min price on those ticks essentially and then we can hit
create position uh and that’s going to take us directly over to PancakeSwap. It’s going to select the assets for us, select the fee tier, everything like that. It’s also going to input our range, which is great. And then from there, we can actually put in the amount of each asset we want to deploy. So it’s going to tell us over here, let’s just say we want to deploy $10,000.
We need 1208 Pendle. And if we put in 1208 pendle it’s gonna come up with about 9.44 b and b and that’s going to be equal to about what’s over there um i will say they’re different price oracles occasionally there could be a little bit of a discrepancy so do keep that in mind you can also use aperture finance to zap into the liquidity pool and actually instantly rebalance your liquidity pools which is great after finance is a partner of metrics finance but once you’re on aperture finance you would want to go over to the top right go to pancake swap and
select bnb chain i will say they do only support bnb and ethereum so do keep that in mind we can head over to our liquidity positions over here and from here we’re able to create new positions and we would just hit that little zap in button and that would allow us to just put up one asset it would automatically execute a trade and deploy into liquidity pool and it gives us the pcs nft in our wallet as a normal pcs nft and aperture has no custody over that nft so great great tool out there but ten thousand dollars
expected to make me about 32 bucks a day I’m pretty happy with that right I’m stoked for that the next thing I would do is dive into some of these other pools and I’m going to start to look at one of those more blue chip pools something like eth ETH to BTCB.
This one doesn’t even include BNB, but what I’m going to do here right off the bat, adjust my deposit amount to $10,000 because that’s what I would want to deploy into the pool. I’m also going to go ahead and drag that max price to the top of the 30 day range, drag that mint price up to the bottom of the 30 day range. And I’m going to say, oh, well, I’m close to going out of range right here. I got about 82% Bitcoin B. So I’m going to say, oh, well, I’m close to going out of range right here.
I got about 82% Bitcoin B. So I’m going to want to go ahead and make some adjustments because recently ETH has been doing better than Bitcoin. Keep that in mind. So we’re going to bring that down to about 17.5. It’s going to give us some big buffer room right there. And then we’ll probably bring this up to about 22. And once we’re there, that’s showing roughly an 80% APR.
We’re going to dive into the volume and say, hey, this volume was pretty high over here. Recently, it’s pretty low. So we’re gonna use three days of data because as you can see, these three days seem to be very, very consistent recently. So I’m gonna wanna use just those three days. I’m gonna put my calculation range at three days and that’s doing about 33% APR.
And then I’m gonna go over here to the current price and I’m gonna bring that to top of distribution because as you can see, there’s this huge spike right to the right of the current price, which is that pink line. We want to see what type of return we’re getting over there in the case scenario that the price reverts right over here or in the case scenario that this person or these people move their liquidity to where the current price is at.
And if there is that much liquidity and current price we will get about 14 APR so keep that in mind we need to be careful right and personally I would want to get higher than a 14 APR deploying into this pool so the next thing I’m going to do is just drag out my calculation range once again and I’m also going to reset the current price just by using this number right here and then I’m going to see what type of range I could do that’s on a little bit more of a tighter basis and then see what the returns look like because maybe I could squeeze
out like 20 25 which I would be happy with I’m going to bring that up to about 18 keep in mind I will have to be more active in this pool and I’m going to bring that down to about 21.4 so we got 18 21.4 that’s getting us about 50 50 on the assets I’m happy with that even though ETH has been doing well recently if there is a period where bitcoin does really good we want to retain exposure to that we’re not completely in ethereum season quite yet still in bitcoin season so just going to keep those fundamentals in mind
and then i’m going to bring that calculation range down to three days that gets me about 44 bringing that current price over to where there’s a ton of liquidity that gets me about 18 apr so in this scenario probably not going to deploy into this pool i feel like there could be better options available we want to see if there are better options available you can head right over to the simulate page we go to pair once we’re on this pair tool we can select every exchange in every single network and from there we will be able to browse across these different
exchanges and networks what pools the best now personally i’m not going to really want to look on orca or radium mainly because they’re on the I’m not going to really want to look on Orca or Radium, mainly because they’re on the Solana network. I don’t really want to be on the Solana network. And the reason why is because recently transactions have been being a little bit slow.
I’m also going to uncheck C-Low as well as Avalanche because typically those ones don’t have as good returns. And I’m also going to uncheck SushiSwap because there’s not that much liquidity over on SushiSwap. Now we’re going to go ahead and select a pair ETH as well as WBTC. Now, keep in mind, we are looking at Bitcoin B over on the Binance network. I’m going to select WBTC.
I’m also going to go ahead and start to fill out some things. This similar assets button, I’m going to turn that on because that’s going to show me not just wrapped Bitcoin, not just wrapped ETH, but derivatives of those assets. So you’re going to start to see, we’ll see like TBTC as well as the Bitcoin B that we did see over on the Binance Smart Chain Network.
Now we’re going to go ahead and grab the parameters that we used, a range of 18 to 21.4. We’re just going to go ahead and throw that in where it says min price and max price, 18, 21.4. Additionally, going to throw in our calculation range of three days. And our current price, we’re even going to adjust that. So we’re going to bring that current price right in there, basically.
And as you can see, can see we got about 40 apr if we go over on uni swap 28 apr as well on uni swap and if we keep on going on the list all of these seem to be somewhat better than pancake swap obviously we want to go and do the due diligence into those but it seems like we’re getting a better return over on uni swap but something i’m going to go and mention is as you can see this is about 40 30 a PancakeSwap pool over here that is about 38% compared to the original one that we were looking at that was only 18%.
So we would want to go and deploy into this PancakeSwap one, even though it’s doing a little bit less than the Ethereum network one. PancakeSwap has much, much more favorable fees on the binance smart chain network so does uni swap but as you can see there’s not much data for the uni swap one because there’s nobody trading it over on uni swap so just like that we are able to identify a better opportunity for this bitcoin b ethereum pool by using this feature so pretty cool stuff i will say this pair feature is only available in metrics pro users it’s one of those convenience features but
really what you would want to do if you didn’t have Pro, you would go over to select exchange and you would look at the Binance Smart Chain Network and you would look at Bitcoin B, Ethereum, and then you would pull it up in the 0.05% tier as well as the 0.25% tier, pull up two screens and compare them side by side essentially.
Now, as far as tracking liquidity pools go i personally use aperture finance because i’m able to see with ease exactly how my assets are doing basically as you can see this liquidity pool i’ve opened 99 fett one percent b b that tells me hey this pool is literally nearly out of range it’s right on the edge of being out of range so i would probably want to rebalance this pool in this scenario i would go and i would do some due diligence, look over at CoinGecko, see how BNB has performed and how FET has performed and see if
there’s any possibility of retracement. And if there is, then I’m going to wait it out. If there’s not, I’m just going to go ahead and hit that little rebalance button. And what this is going to do, once I put in my new range, basically, it will essentially automatically execute a trade to get me to about 89% FET and 11% BNB, because that’s what’s required for my new position.
So instead of having to go over to PancakeSwap, exit, execute a trade on my own, and then re-enter, I do it from Aperture. Once again, I retain full custody. It just bundles all that into one transaction, makes it very, very easy for me to manage just a quarter of the pool.
Now, when it comes to actually tracking performance Performance of these positions if you guys do want us to build a feature on metrics finance for actually tracking your positions
