Liquidity provision remains one of the most profitable DeFi strategies. By providing tokens to decentralized exchanges, you earn trading fees and often token incentives.
Top LP Opportunities by Type
Stablecoin Pools (Low Risk)
Curve 3pool - 3-8% APY- USDC/USDT/DAI
- Minimal impermanent loss
- CRV + gauge rewards
- USDC/USDT concentrated positions
- Higher fees, active management needed
Major Pair Pools (Medium Risk)
ETH/USDC - 10-30% APY- Available on all major DEXs
- Concentrated liquidity increases returns
- Impermanent loss risk
- Correlated assets = less IL
- Lower volume = lower fees
Incentivized Pools (Variable Risk)
Aerodrome (Base) - 15-50% APY- AERO emissions to LPs
- ve(3,3) model
- VELO emissions
- Bribe marketplace
- spNFT positions
- GRAIL incentives
LP Yield Comparison
| Pool | DEX | Chain | APY | IL Risk |
|---|---|---|---|---|
| . . . | . . - | . . . - | . . - | . . . . - |
| 3pool | Curve | ETH | 5% | None |
| ETH-USDC | Uniswap | All | 15% | High |
| ETH-USDC | Aerodrome | Base | 25% | High |
| stETH-ETH | Curve | ETH | 3% | Low |
Understanding Impermanent Loss
IL occurs when the prices of your deposited tokens diverge:
- Low IL: Correlated pairs (ETH/stETH), stablecoins
- High IL: Volatile pairs (ETH/memecoins)
LP Strategies
Conservative
- Curve stablecoin pools
- stETH/ETH pools
- Balanced IL protection
Moderate
- Major pairs on Uniswap V3 (wide ranges)
- Incentivized stable pools on L2s
Aggressive
- Concentrated liquidity positions
- New token pairs
- Leverage LP via Gearbox/Extra Finance
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Find the best LP yields with Fensory. Compare pools across chains and protocols. Explore LP Yields →