Uniswap is going ballistic with more and more trading volume everyday. It looks like time for dexes( Decentralised exchanges) has arrived. Users earn trading fees of Uniswap platform for providing the liquidity to the platform.
So one question must come in your mind how can i earn the passive income from the fees generated by Uniswap Liquidity pool and know expected returns.
One thing you must in keep in mind that the Crypto assets are very volatile so even if you generated some fees you may not be profitable if asset prices go down. But mostly if market is optimum you can earn good amount of passive income and it’s proportional to the amount of liquidity you provide.
How to know expected ROI
There is a nice Uniswap ROI calculation portal developed by developer Federico through which you can know the best pools and track your investments and returns. You can click below to visit the site.
They also have a YouTube channel on which they share the different strategies to increase the yield through Uniswap liquidity pool.
Yield and Liquidity Table
The website shows the expected returns in a nice tabular form. You can click on particular pool to know more about in detail.
Right now ETH/MTA pool showing highest APR of over 333% , the monthly net yield is expected about 27%.
Prices and Plans
They have a freemium model in which most of the basic services are free and for professional and larger investors there are plans of 1 ETH and 5 ETH per year. I think they should include stable coins as payment too as ETH as volatile asset many people would not like to use it as payment.
Defi sector is booming very rapidly since last few months, total value locked in defi protocols has already passed 3 billion USD.
There are many earning opportunities in defi like interest on your coins , yield farming , collecting fees for providing liquidity to Dex like Uniswap and balancer.
You can earn significant passive income by taking part in one of these defi protocols. There is always a risk though as this tech is still in experimental stage and have attack vectors like hacking ,market sentiments etc.
Do you already do liquidity mining on Uniswap, what was your experience ,let me know in comments.