Adding liquidity to V3 farm

Just a question about adding liquidity to a V3 token pair:
For example the Cake + USDT as shown above.

What are the bars that you can move, I’m understanding it’s to do with how much of each token to add to balance the pool?
How do you know where to put it at, or just leave it what it defaults to like here?

4 thoughts on “Adding liquidity to V3 farm”

  1. That is the range you’re supplying liquidity too. The tighter the range the higher the reward, but if price moves outside the range you don’t receive rewards unless price moves back in range.

  2. Careful, you could end-up with only one token in your liquidity after a certain time. This happened to me in a CAKE – BNB pool. I ended up only with cake 🤦🏻‍♂️

  3. If the price goes outside of the range you set, you will only have one of the tokens left (the wrong one, ie the one for which the relative price decreased). You also don’t earn fees when the price is out of the range.

    You are basically supplying your tokens for liquidity only in that range, but it will fully use up all your liquidity before leaving the range.

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