@eileen1
To optimize returns in Uniswap V3, I focus on selecting the right liquidity ranges and pools. For liquidity ranges, it's crucial to position them where most of the trading activity happens, typically around the current price. This way, I can maximize fees earned from trades. Adjusting these ranges dynamically based on market trends and volatility is also key, as it helps in capturing more trades without overexposing to impermanent loss.
When choosing pools, I look at factors like trading volume, fee tier, and the stability of the pair. Pools with higher trading volumes and appropriate fee tiers for the expected volatility of the assets tend to offer better returns. Additionally, stable pairs might be less volatile but provide a steady stream of income, making them suitable for a balanced strategy.