Welcome to our guide for Revert. The platform has been designed to enhance your experience with LP positions on the Forge DEX. This guide will break down the platform’s primary features: Initiator, Top Positions, and Incentives, helping you make the most of your Liquidity Provider (LP) endeavors.
Understanding Revert
Revert is a platform that assists you in managing your Liquidity Provider (LP) positions on Forge. Its unique feature is the ability to run simulations, known as backtests, which can help you forecast potential earnings. It does so by using crucial data such as accrued fees, potential impermanent loss, and Annual Percentage Rates (APRs). By adjusting various parameters, you can estimate the profitability of your LPs, giving you a more predictable outlook on returns. In addition to this, the platform offers auto-compounding features and integrates reward incentives to boost your potential returns.
To fund its range of tools, Revert operates a protocol that auto-compounds positions and charges a minor performance fee.
The Initiator: Your Backtesting Tool
The Initiator is your primary tool for backtesting LP positions. Here’s a step-by-step guide on how to use it:
- Select your network and pair: For example, you might choose Evmos and the WETH/USDC pair.
- Identify an optimal fee tier: Look for a fee tier that offers a favorable fee-to-reserve ratio.
- Select a price range in USDC: This tool shows you where the price has been previously, so you may decide to capture any movement within that historical price range.
- Run a backtest: Use a chosen amount of USDC for this simulation. This won’t involve real money, but it will give you a realistic idea of potential earnings. This backtest will show you the possible APR compared to holding 50% of each asset, providing a clear comparison of profitability.
- Repeat the process with different scenarios before finally setting your liquidity range.
Top Positions: Understanding the Market
The Top Positions tab is a comprehensive overview of the performance of various LP positions. It provides data such as token pairs, the amount of liquidity provided, the profits earned, the APR, and whether the position is currently in range. To make this data more relevant and reliable for you, use filters to set a minimum position value and age. For instance, setting the minimum position value to $10,000 and age to ten days may yield more trustworthy data.
When analyzing positions, take note of the P/L and the APR, which are calculated versus holding 50% of each asset in the pair. If you wish to compare the performance to holding just one of the assets, you need to go back to the Initiator and run those numbers.
Clicking on a specific position will provide even more detailed analytics. You’ll see the liquidity distribution, the price changes over time, trading volume, and price divergence. These insights can guide you in choosing profitable positions.
Incentives: Maximizing Your Returns
The Incentives tab showcases incentive programs available on networks like Evmos and Ethereum. These programs offer additional rewards to liquidity providers in specific pools. The tab provides details such as the start and end dates of the incentive program, the participating token pairs, and the amount of rewards.
By reviewing this information, you can identify pools that not only provide good returns through trading fees but also offer additional incentives for providing liquidity.
Conclusion
Revert offers a rich set of tools that are invaluable for anyone venturing into Forge. While this platform provides crucial insights into the performance of various positions, it’s important to remember that it doesn’t guarantee profits. Always conduct your own research, understand the risks involved, and make informed investment decisions. This guide is your starting point on your journey, but the path to success involves continued learning
