Since inception (~120 days ago) DAI pool liquidity provisioning outperformed holding 100% ETH around 75% of the time or ~90 days.
Uniswap liquidity provisioning on active pools is proving to be a great alternative to hedge your assets as exchange fees generated seem to be outpacing any impermanent losses incurred. Past few weeks we’ve witnessed some of the most volatile times in crypto history. Extreme volatility resulted in increased volume, especially around stable tokens such as DAI and USDC as many rushed to exit their crypto positions. For example, on March 13th alone, DAI<>ETH LPs proportionally earned ~$75,000 for processing ~$25M worth of swaps!
This report is based on a cadCAD model of Uniswap by Markus Buhatem Koch