I read a Uniswap V3 LP tutorial with 12,000 views. It was mostly accurate, and it wasn’t a scam.
But it left out the biggest risk: impermanent loss. If the price moves outside your chosen range, your position becomes exposed to just one side. You earn less when the price rises and lose more when it falls—and fees may not make up for it.
The author used their own ecosystem token as an example without disclosing their conflict of interest. They also claimed that wBTC/cbBTC offer “considerable returns” without providing any data, and there’s also the custody risk.
If you’re new, remember: start small. If you don’t understand impermanent loss, stay away from narrow ranges and high-APR pools.
— ZycBNB
#DeFi #LP #Web3
But it left out the biggest risk: impermanent loss. If the price moves outside your chosen range, your position becomes exposed to just one side. You earn less when the price rises and lose more when it falls—and fees may not make up for it.
The author used their own ecosystem token as an example without disclosing their conflict of interest. They also claimed that wBTC/cbBTC offer “considerable returns” without providing any data, and there’s also the custody risk.
If you’re new, remember: start small. If you don’t understand impermanent loss, stay away from narrow ranges and high-APR pools.
— ZycBNB
#DeFi #LP #Web3