Fees Earned In Down Markets | DeFi Journey #2

(Edited)

This week I claimed $50.51 in fees, a decent despite the crypto markets taking a hit the past week with BTC breaking below $80k, and ETH dipping into the low $1800 range. My four concentrated liquidity positions (CLPs) held strong, thanks to the wide ranges I set up. For the past two weeks, I've been earning fees consistently without needing to rebalance. This is a huge win, especially after my first month of rediscovering DeFi. In February, I had to rebalance twice due to narrow ranges, eating impermanent losses which I chalk up to the school fees of learning CLP DeFi. I made the newbie mistake of chasing juicy APRs with tight ranges, but was burnt. Now, I am much happier with wider ranges continuously earning me fees (lower APRs), even in down markets.

How did I set these wide ranges? No scientific method - just some basic technical analysis using the smooth moving average over a period to gauge price action, then setting a wide range around it. It's all guesswork, honestly, but it's working. Let's dive into this week's updates for each CLP, including the fees earned, total rewards, and updated values.

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CLP - ETH/USDT - PancakeSwap, Binance Smart Chain

My WETH/USDT CLP on PancakeSwap, with its $1698 to $2997 range, stayed in range all week. I farmed $19.38 this week, pushing total rewards to $142.05. This week's rewards was converted to ETH and will be used to increase the CLP -- USDC/cbBTC position.

  • In-Range: ✅
  • Range Setup: $1698 - $2997 (56.8% wide range)
  • Rewards Farmed This Week: $19.38
  • Total Rewards: $142.05
  • Total Deposits: $2213.00
  • Current Value: $1390.25
  • Yearly APR: 54.94%
  • Price Difference (Inc. Fees): -$680.70 (-30.76%)

CLP - ETH/USDC - Aerodrome Finance, Base

My ETH/USDC position on Base, set between $1706 and $3108, also stayed in range for the full week. I earned $18.00 this week, bringing total rewards to $145.11. As above, rewards were converted in ETH and will be used to increase the CLP -- USDC/cbBTC position.

  • In-Range: ✅
  • Range Setup: $1706 - $3108 (60% wide)
  • Rewards Farmed This Week: $18.00
  • Total Rewards: $141.51
  • Total Deposits: $1663.40
  • Current Value: $1039.48
  • Yearly APR: 74.36%
  • Price Difference (Inc. Fees): -$478.81 (-28.79%)

CLP - SOL/USDC - Orca, Solana

My SOL/USDC position on Orca, with a $97 to $180 range, continued to perform well. I earned $11.25 this week, bringing my total rewards to $44.22. This CLP yearly APR is the best performing out of all my DeFi pools. The earnings farmed will be used to increase this positions deposit as I would like to have $1500 in the pool.

  • In-Range: ✅
  • Range Setup: $97 - $180 (59.4% wide)
  • Rewards Farmed This Week: $11.25
  • Total Rewards: $44.22
  • Total Deposits: $856.30
  • Current Value: $710.24
  • Yearly APR: 82.05%
  • Price Difference (Inc. Fees): -$101.84 (-11.89%)

CLP - USDC/cbBTC - Aerodrome Finance, Base

The USDC/cbBTC CLP on Base, has a $70604 to $100190 range and the only CLP pool that is in profit including fees. I farmed $1.04 this week, with total rewards at $1.62. The 35% wide range worked well, and I'm looking to grow this CLP with earnings from other positions.

  • In-Range: ✅
  • Range Setup: $70604 - $100190 (35% wide)
  • Rewards Farmed This Week: $1.04
  • Total Rewards: $1.62
  • Total Deposits: $80.63
  • Current Value: $79.88
  • Yearly APR: 45.95%
  • Price Difference (Inc. Fees): $0.87 (1.08%)

Concluding Thoughts

After six weeks of DeFi, my total deposits across all positions are $4813.33, with a current portfolio value of $3219.85. This week's $50.51 rewards continue to push me closer to my daily DeFi goals: $1 ✅, $3 ✅, and $5 ✅ achieved, with $10, $20, $50, and $100 as the next targets. The market downturn has been rough, but my wide ranges have kept me earning fees for two weeks straight, no rebalancing is needed. I'm learning as I go, and this journey is all about building long-term cash flow to re-invest into long-term HODLs.

Thank you for reading and hope you have a good rest of the day!

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