Uniswap yUSD+yETH liquidity providers?

Does it make sense to add yUSD+yETH liquidity to uniswap? According to pools.fyi, ETH/DAI is over 5% for the last 30 days. Adding those returns on top of the returns from yearn could be nice.

Impermanent loss could be a problem though.

None of the yearn products incur in IL, so I don’t think so.

The IL would be from being a uniswap LP, not from yearn.

Feel free to create the uniswap pool. :slight_smile: Anyone can do it.


Anyone can do it, yes. But that doesn’t mean it is a good idea.

Why would it be a bad idea ? Curious to see your point on this.

Impermanent loss can be a problem. https://blog.bancor.network/beginners-guide-to-getting-rekt-by-impermanent-loss-7c9510cb2f22

Personally, I’m long ETH and so holding stablecoins isn’t great. Maybe something like this could help. https://defitutorials.substack.com/p/dai-leveraged-liquidity-pool-defizap

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https://cream.finance has a pool for this pair.