On-chain trading has become a popular trend in the cryptocurrency industry. The rise of decentralized exchanges (DEXs) has provided traders with a new way to participate in the market. In this report, we aim to explore an on-chain trading opportunity by analyzing the data of the Uniswap trading pair, ARB/USDC, on the Arbitrum network.
In the future of DEX trading, it is worth exploring the trading volume comparison between DEX and CEX.
These trends suggest potential opportunities for growth in the DEX market and highlight the importance of optimizing on-chain infrastructure for more efficient and effective trading.
In this part, we will analyze the trading data of the ARB/USDC trading pair on Uniswap on the Arbitrum network and analyse a market maker strategy.
We collected the LP value PnL data of the ARB/USDC trading pair on Uniswap on the Arbitrum network from the Revert.Finance. The data covers the period from March 23, 2022, to March 24, 2022.
The price high volatility includes three time periods:
The Uniswap v3 pool fee collected shown in 3 days:
Uni_Pair_fee | Fee collected (Day 1-2-3) |
---|---|
ETH / ARB 0.3% | **424k-**519k-88k |
ETH/ARB 1% | 831k-258k-42.9k |
ETH/USDC 0.05% | 87k-101k-43k |