Chapter 7 - Comparing Yields across ranges

Comparing yields in AMMs can be quite difficult. We have a way to compare any APY regardless of range using this spreadsheet.

Spreadsheet

In the spreadsheet, you can visualize how the UniV3 Yield increases by range.

You can see how the Impermanent Loss varies by range.

Finally, you can see how leveraged the V3 liquidity range is compared to a full range V2 position.

Convert V3 range to V2 APY

To convert a V3 range that is ~30% to a V2 APY, here is how. Enter the yield for the 30% range "UniV3 APY", the lower price of the range "Lower Price" and the upper price of the range "Upper Price" into the orange input boxes.

Then we get the outputs - the "Log Range Mid Price" (which should equal the current price), the "Log Range %" (it matches 30%...looks good), and the "Leverage Multiplier" (showing how leveraged your range is vs full range). Finally, in the last row we can see the "Deleveraged APY" of 6.73%.

If we don't know what the range should be, we can use the following range calculator.

By entering in the "Current Price" and the "Range" %, we can get the "Lower Price" and the "Upper Price" based on the range.

Convert V2 APY to range

We can also convert a full range UniV2 APY into any range. Here is how.

First input in the full range yield into "UniV2 APY", the "Lower Price" for your desired range and the "Upper Price".

In the grey boxes, you will receive as output the "Log Range Mid Price" which is the middle of the range, the "Log Range %" so the % length of the range, the "Leverage Multiplier" or how leveraged the range is compared to full range. Finally, in orange we have the "Leveraged APY" which is the yield for the selected range. Congratulations, you can now compare yields across any range! 🥳