Aggregating the discord discussions on UNIV3 with Will Sheehan | Parsec on accessing greater FLOAT liquidity with a tighter curve.
Non-pegged 0.05% pairs:
- USDC/EURS: two primary ranges (+/- 3.9% and +/- 8%), 7 day range = 2.43%
- RAI/DAI: 2-3 ranges (+/- 0.8% and +/- 3.8%), 7 day range = 3.7%
- FEI/USDC: ranges (+/- 1.17%) 7 day range = 1.92%
- USDC/ETH: 3ish ranges (+/-0.12, +/- 14%, +/- 36.79%) 7 day range = 10.6%
The LP returns are much lower, but due to the low fee the volume would theoretically be much higher.
If the 5bps fee tier was chosen the LPs return profile gets chopped pretty good, I’d personally advocate for the 30bps tier as a starting point considering the asset is new and volumes aren’t that large yet
FLOAT 7 day range (is approx 1.50 - 1.63).
10% range => 20.44x fee increase so up to “1% fee”, $10k equivalent $204k in capital.
FLOAT 33 day 2 sigma should give a very comprehensive range, but this data also includes some very large drops and an auction spike due to delay.