# Uniswap yUSD+yETH liquidity providers?

**URL:** <https://gov.yearn.fi/t/uniswap-yusd-yeth-liquidity-providers/4587>\
**Category:** Yield Farming Inception\
**Created:** [3 September 2020 04:38 UTC](https://gov.yearn.fi/t/uniswap-yusd-yeth-liquidity-providers/4587 "2020-09-03T04:38:46Z")\
**Posts on this page:** 8\
**Page:** 1

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**Author:** ![RedEmerald](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/redemerald/32/1401_2.png) [@RedEmerald](https://gov.yearn.fi/u/RedEmerald)\
**Post date:** [3 September 2020 04:38 UTC](https://gov.yearn.fi/t/uniswap-yusd-yeth-liquidity-providers/4587/1 "2020-09-03T04:38:46Z")

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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.

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**Author:** ![Juanma](https://avatars.discourse-cdn.com/v4/letter/j/bc8723/32.png) [@Juanma](https://gov.yearn.fi/u/Juanma)\
**Post date:** [3 September 2020 05:40 UTC](https://gov.yearn.fi/t/uniswap-yusd-yeth-liquidity-providers/4587/2 "2020-09-03T05:40:51Z")

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

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**Author:** ![RedEmerald](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/redemerald/32/1401_2.png) [@RedEmerald](https://gov.yearn.fi/u/RedEmerald)\
**Post date:** [3 September 2020 15:38 UTC](https://gov.yearn.fi/t/uniswap-yusd-yeth-liquidity-providers/4587/3 "2020-09-03T15:38:31Z")

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

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**Author:** ![mbaril010](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/mbaril010/32/220_2.png) [@mbaril010](https://gov.yearn.fi/u/mbaril010)\
**Post date:** [3 September 2020 19:31 UTC](https://gov.yearn.fi/t/uniswap-yusd-yeth-liquidity-providers/4587/4 "2020-09-03T19:31:45Z")

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

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**Author:** ![RedEmerald](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/redemerald/32/1401_2.png) [@RedEmerald](https://gov.yearn.fi/u/RedEmerald)\
**Post date:** [3 September 2020 21:52 UTC](https://gov.yearn.fi/t/uniswap-yusd-yeth-liquidity-providers/4587/5 "2020-09-03T21:52:02Z")

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

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**Author:** ![mbaril010](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/mbaril010/32/220_2.png) [@mbaril010](https://gov.yearn.fi/u/mbaril010)\
**Post date:** [3 September 2020 22:15 UTC](https://gov.yearn.fi/t/uniswap-yusd-yeth-liquidity-providers/4587/6 "2020-09-03T22:15:00Z")

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

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**Author:** ![RedEmerald](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/redemerald/32/1401_2.png) [@RedEmerald](https://gov.yearn.fi/u/RedEmerald)\
**Post date:** [4 September 2020 01:15 UTC](https://gov.yearn.fi/t/uniswap-yusd-yeth-liquidity-providers/4587/7 "2020-09-04T01:15:45Z")

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Impermanent loss can be a problem. [https://blog.bancor.network/beginners-guide-to-getting-rekt-by-impermanent-loss-7c9510cb2f22](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](https://defitutorials.substack.com/p/dai-leveraged-liquidity-pool-defizap)

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<div class="post-metadata">

**Author:** ![RedEmerald](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.yearn.fi/redemerald/32/1401_2.png) [@RedEmerald](https://gov.yearn.fi/u/RedEmerald)\
**Post date:** [14 September 2020 23:55 UTC](https://gov.yearn.fi/t/uniswap-yusd-yeth-liquidity-providers/4587/8 "2020-09-14T23:55:55Z")

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[https://cream.finance](https://cream.finance) has a pool for this pair.

> **[C.R.E.A.M. Finance APP](https://app.cream.finance/pools/pool/0xb3284f2f22563f27cef2912637b6a00f162317c4)**
>
> C.R.E.A.M. Finance is a decentralized lending protocol for individuals, institutions and protocols to access financial services.
