Selling coins with single-sided liquidity on Uniswap V3

General Discussions Forum
1

Has anyone sold coins (like ETH for USDT) using single-sided liquidity on Uniswap V3?

2

Yeah, it’s like a limit order, but if the price changes back, you’ll buy again.

3

Tenzin said:
Yeah, it’s like a limit order, but if the price changes back, you’ll buy again.

I’m looking for a video or documents that explain how it works.

4

BookwormBard said:

Tenzin said:
Yeah, it’s like a limit order, but if the price changes back, you’ll buy again.

I’m looking for a video or documents that explain how it works.

I wouldn’t recommend it unless you’re selling a huge amount. It’s not really useful.

For example, let’s say the current price is 3000, but you want to sell at 3100 on average. You set up your price range between Pa and Pb so that sqrt(Pa*Pb) is 3100. Pretty simple. Just make Pa and Pb close to 3100.

The issue is, if the price drops below 3100 and comes back up before you close, you’re back to holding ETH. You might make a small amount in fees, but it’s not much.

If you plan to close when the price is above 3100, you might as well sell your tokens right away instead of doing this Uniswap setup.

It’s only useful if you’re really focused on collecting fees or if you’re trying to sell so much that you’d crash the market by doing it all at once.

5

@Tenzin
I’m worried about the high ETH swap fees during a bull market. Should I use a centralized exchange instead of DeFi or just use Uniswap’s simple swap feature?

6

BookwormBard said:
@Tenzin
I’m worried about the high ETH swap fees during a bull market. Should I use a centralized exchange instead of DeFi or just use Uniswap’s simple swap feature?

You’re right, gas fees can go crazy, but remember, you still need to close the Uniswap position to lock in the sale. That means you’ll have to pay gas fees, and closing costs more gas than a regular swap.

So, I’d say either move to a centralized exchange or switch to Layer 2 solutions like BASE or ARB. They’re both good choices.

7

BookwormBard said:
@Tenzin
I’m worried about the high ETH swap fees during a bull market. Should I use a centralized exchange instead of DeFi or just use Uniswap’s simple swap feature?

Just buy ETH on a Layer 2 network like OPT, ARB, MATIC, BASE, or BNB. You can also use the Solana network to get WETH.

If you want to set up limit orders to buy later, use a DEX like Apex Pro or Kwenta.

Or go with a centralized exchange, but during high volatility, those exchanges might freeze trading or have server issues.

Liquidity pools are mainly for earning fees from people trading. You’re acting like a market maker.

8

BookwormBard said:
@Tenzin
I’m worried about the high ETH swap fees during a bull market. Should I use a centralized exchange instead of DeFi or just use Uniswap’s simple swap feature?

Just use a centralized exchange and withdraw after, or switch to Layer 2. Base is a good option.

9

Yes, set the minimum price where you want to start selling and the maximum price where you want all of your position converted to another coin.