Liquidity Pool Beats Grid Bot With Nearly Double the APY in Same Price Range
A trader tested two passive income strategies — a grid bot on Pionex and a concentrated liquidity position on VFat — using the identical WETH/USDC price range of 1630–2000 over the same time period. The grid bot delivered 11.83% APY while the liquidity pool returned 21.63% APY, nearly twice the yield. The core difference is how each strategy earns: the grid bot only profits when the price crosses predefined steps, whereas the LP position collects a fee from every swap executed within the set range. Exchange fees further erode grid bot returns, since each round trip costs 0.10%, meaning the price must move 0.20% per step just to net that amount. The author notes grid bots can still outperform in high-volatility, low-volume conditions, but concludes that liquidity pools are more effective when a price range holds steady with consistent trading volume.
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