Zephyrnet Logo

Best Uniswap interest account with highest ROI

Date:

Above, we have mentioned the different ways to earn Uniswap from an interest account.

However, its also possible to stake Uniswap token on the Uniswap exchange to earn trading fees.

This can give a great return but it´s quite complicated to calculate and compare with an interest account.

With Uniswap you might get divergence loss or impermanent loss.

Basically, it means that you shouldn’t deposit into Uniswap liquidity pool if you believe one asset will perform the other asset. Also, it means that there is no point to deposit for short term gains.

The best scenario is, if the market is volatile and there is a lot of trading. On top of this, the ratio between the cryptocurrency pair you stake shouldn’t change too much since this will lead to divergence loss, or impermanent loss. 

The best thing with Uniswap liquidity pool is that there is no counterpart that can default. The risk is in a smart contract(low risk compared to centralized apps) and the impermanent loss.

Source: https://www.cryptocoinzone.com/review/best-uniswap-interest-account-with-highest-roi/

spot_img

Captcha

Captcha

Latest Intelligence

spot_img