After BSC started the ALPHA points and trading competition, many people only thought about earning points and which potential quality coins to buy.
But what I thought about is how to find high liquidity coins to add LP and earn profits, which is much higher than the little candy rewards given during each ALPHA exam.
Looking at the current PANCAKE liquidity farm, the on-chain project EGL1 has a daily trading fee of $32,000. This is across the entire range. If the coin price does not fluctuate much, you can set a narrower range in the V3 pool, and the APR can go directly into the thousands. This means that if you provide liquidity with $10,000, the daily profit will be around 10%, which is quite terrifying.
However, as competition in the pool increases: high APR will attract more LPs to enter, diluting profits.