Uniswap V3 stablecoin strategy

While there could be a lot of good uniswap v3 strategies, stable coins seem the easiest and most obvious that we could take advantage of. I think it is very important to get out in front of the v3 release as much as possible to capitalize on collecting as much TVL as possible on release.

Part 1:
DAI/USDC LP will be my example but could use any two stable coin pairs. The basis of the strategy is to analyze the min/max spread of the pairs over time ‘T’ this would need to be done by a bot off chain. The bot will be in control of how much spread the liquidity is applied to, and would refine the spread over time.

Example: suppose the DAI/USDC value spread has stayed within ±0.01 for a week and the bot has reallocated the spread to be ±0.01. The second week goes by and there is much more precision in the LP, and the spread is only ±0.001. The bot reallocates the LP to be within this ±0.001 range. Now week 3 is here and Dai goes off the peg a bit more. It has gone to ±0.05. Now the bot sees this and reallocates the LP to capture this.

This is a simple example, but the benefit to users would be savings on the gas cost and automation, and leverage of capital in the LP, but not missing out when the spread is not in the band.

Part 2:
We could get more complex with this by having the bot look at multiple stablecoin pairs and find the most profitable one based on fees collected and how narrow of a band the bot is allowed to use on that LP to swap between.

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