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Robinhood V3/V4 Active-Pool Concentrated Liquidity Strategy

Article Strategy library · Author: ianzeng123

Summary

This strategy selects active ETH/WETH liquidity pools on Robinhood Chain and opens concentrated liquidity positions to earn trading fees. It discovers candidate pools through paginated directories, screens activity and market conditions, then checks pool identity, current on-chain liquidity, swap quotes and estimated round-trip costs. Entry requires discounted hourly fee estimates to cover the projected costs with an additional margin. The strategy excludes new USDG-target positions and uses hook-free pools with static fees.

Positions are monitored for net loss, price deviation, liquidity changes and fee progress. Exit removes liquidity, collects fees and converts proceeds back to ETH. The document reports that small live entry-to-exit cycles were completed for both V3 and V4, validating execution flow and fee accounting. It does not establish long-term profitability: price movements and transaction costs can outweigh fees, and exit limits do not guarantee the realized loss. Several stated defaults constrain budget and exposure, but actual deployment also depends on wallet reserves and built-in limits.

Key ideas

  • Pool selection combines trading activity, liquidity, price movement and on-chain verification.
  • Projected fees are discounted and compared with estimated entry and exit costs before opening a position.
  • The strategy uses concentrated liquidity around the entry price and manages positions without a fixed holding deadline.
  • Loss, price-deviation and fee-progress checks can trigger liquidity removal and conversion back to ETH.
  • Small live cycles validate execution and fee accounting, but do not demonstrate durable profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.