Question 1

When should I rebalance my Uniswap V3 LP position?

Accepted Answer

Rebalance when the expected fee income in the new range exceeds: (1) gas to remove liquidity + gas to add new position + swap fees to rebalance token ratios. On mainnet this typically requires at least $20–$50 in expected fees before a rebalance makes economic sense. On L2s (Arbitrum, Base), gas drops to $0.10–$1 and rebalancing becomes viable at much lower fee income.

Question 2

What happens when an LP position goes out of range in Uniswap V3?

Accepted Answer

When price moves outside your specified range, your position stops earning fees. You become 100% exposed to one asset — if price goes above your range, you hold only the base token; below, only the quote token. You are essentially running a limit order that filled as price moved through your range. You can wait for price to return or rebalance into a new range.

Question 3

What are the costs of rebalancing a Uniswap V3 position?

Accepted Answer

Rebalancing costs: (1) Gas to collect fees, (2) Gas to remove liquidity, (3) Swap fee to rebalance token ratio (0.05–1% depending on pool), (4) Gas for the swap, (5) Gas to add new position. Total on mainnet: $30–$150. On Arbitrum: $0.50–$3.

Question 4

Is it better to widen the range or rebalance more often?

Accepted Answer

Wider range = more time in range but lower capital efficiency and less fee concentration. Narrow range = higher fee APR when in range but more frequent rebalancing and higher total rebalance costs. For volatile assets, wider ranges often win because rebalancing costs quickly exceed the marginal fee gain from a narrower range. For stable pairs, narrow ranges are viable.

Question 5

What is the break-even daily fee income to justify a rebalance?

Accepted Answer

Break-even daily fee = rebalance cost / days until you plan to exit. If rebalancing costs $50 and you plan to hold for 30 more days, you need $1.67/day in fees from the new position to break even. If the new position yields only $0.50/day, holding out-of-range (zero fees) for 2 weeks and then re-entering when price stabilises is cheaper.

Question 6

How do I calculate impermanent loss when rebalancing?

Accepted Answer

When you rebalance an out-of-range V3 position, you crystallise the impermanent loss. You swap some of the all-one-token position back to 50/50 at current price, locking in the loss compared to the original ratio. If you had started at $3000 ETH/USDC with 50/50 and ETH is now $4000, you received all USDC (sold ETH as price rose) and must buy ETH back at $4000 to re-enter — this is the realised IL.

Calculateur de coût de rééquilibrage LP

Réseau (gaz préréglé)

Position actuelle (hors de portée)

Nouvelle position (après rééquilibrage)

Quand le rééquilibrage a-t-il du sens ?

Questions fréquemment posées