Why Uniswap Liquidity Providers Lose Money: The Full Cost Analysis Beyond Fees
A liquidity provider deposits $10,000 worth of ETH and USDC into a Uniswap pool, confident that swap fees will generate steady income. Six months later, the position is worth $9,200, despite collecting $400 in trading fees. The arithmetic seems clear: fees earned minus value lost equals a net loss. Yet this straightforward math obscures a […]
