• Academy
  • Blog
  • FAQ

Pool

What is V2 AMM?
What is V3 AMM?
What is concentrated liquidity?
How do I pick the fee tier?
How To Create A Concentrated Liquidity Pool
How To Create Positions Within Existing Concentrated Liquidity Pools
How To Remove Your Liquidity From A Concentrated Liquidity Pool
Managing Your Position in Concentrated Liquidity Pools
What are the considerations when I set the price range i.e. min and max price?
If the price moves out of range, what does that mean and what can I do?
What does the APR consist of?
How do I provide liquidity?
How can I earn on Sushi?
What is the difference between APR and APY?
My Farm Disappeared... Where Did It Go?
Why Can't I Withdraw Or Harvest From My Farm?
What Is Impermanent Loss?
How Does A Liquidity Pool Benefit xSUSHI Holders?
Manually Withdrawing From Farm Contracts
How To Calculate The Fees I've Earned?
Why Is My Pool Different Than The Market Rate?
I Added Liquidity & Got Arbitraged... What Happened?
Zap Mode FAQ
How do I pick the fee tier?
What is V2 AMM?
What is V3 AMM?
What is concentrated liquidity?
How do I pick the fee tier?
How To Create A Concentrated Liquidity Pool
How To Create Positions Within Existing Concentrated Liquidity Pools
How To Remove Your Liquidity From A Concentrated Liquidity Pool
Managing Your Position in Concentrated Liquidity Pools
What are the considerations when I set the price range i.e. min and max price?
If the price moves out of range, what does that mean and what can I do?
What does the APR consist of?
How do I provide liquidity?
How can I earn on Sushi?
What is the difference between APR and APY?
My Farm Disappeared... Where Did It Go?
Why Can't I Withdraw Or Harvest From My Farm?
What Is Impermanent Loss?
How Does A Liquidity Pool Benefit xSUSHI Holders?
Manually Withdrawing From Farm Contracts
How To Calculate The Fees I've Earned?
Why Is My Pool Different Than The Market Rate?
I Added Liquidity & Got Arbitraged... What Happened?
Zap Mode FAQ

When choosing a fee tier in a V3 AMM, consider these factors:

  • Trading Volume and Liquidity: Opt for lower fees in high-volume pools and higher fees in lower-volume pools.
  • Asset Volatility: Choose higher fees for volatile assets to offset risk, and lower fees for stable assets.
  • Market Conditions: Adjust fees based on overall market trends and activity levels.
  • Competition Among Pools: Set competitive fees in relation to similar pools.
  • Risk Appetite and Strategy: Align your fee choice with your risk tolerance and investment goals.
  • Historical Performance: Use past pool data to inform your fee tier decision.

Additionally:

  • Sushi UI Guidance: The Sushi UI can show the most commonly selected fee tiers by others, providing a helpful reference point.
  • Variation Within the Same Token Pool: Sometimes, even within the same token pool, different fee tiers exist. It's important to consider these variations as they can indicate different risk-reward balances within the same asset class.

Always be prepared to adjust your strategy as market conditions change.

When choosing a fee tier in a V3 AMM, consider these factors:

  • Trading Volume and Liquidity: Opt for lower fees in high-volume pools and higher fees in lower-volume pools.
  • Asset Volatility: Choose higher fees for volatile assets to offset risk, and lower fees for stable assets.
  • Market Conditions: Adjust fees based on overall market trends and activity levels.
  • Competition Among Pools: Set competitive fees in relation to similar pools.
  • Risk Appetite and Strategy: Align your fee choice with your risk tolerance and investment goals.
  • Historical Performance: Use past pool data to inform your fee tier decision.

Additionally:

  • Sushi UI Guidance: The Sushi UI can show the most commonly selected fee tiers by others, providing a helpful reference point.
  • Variation Within the Same Token Pool: Sometimes, even within the same token pool, different fee tiers exist. It's important to consider these variations as they can indicate different risk-reward balances within the same asset class.

Always be prepared to adjust your strategy as market conditions change.