Say I have 10 ETH and 1000 USDC and I want to become a liquidity provider on uniswap. How much UNI can I earn per day and month? And as a liquidity provider, do I lose my 10 ETH or USDC as I'm not exactly sure how it works.
asked Sep 18, 2020 at 11:38
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In depends on if the ETH price moves and how much volume there is in the pool medium.com/@pintail/understanding-uniswap-returns-cc593f3499ef– Mikko OhtamaaSep 18, 2020 at 11:48
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1 Answer
You can only addequal USD value pair to a pool, let's see 1000 USDC/2.6 ETh (Eth price 384), the daily return is about 1.8% at the moment, based on the pool size of 25m for this pool, with daily reward of 83,333 Uni per pool, Uni price is USD5.5, APY would be around 670% which is very good. However, the pool size is likely to go up quickly, the the reward per pool won't change. the APY will be decresing in proportion of the increase of the pool size. Hope this helps.
