Been LP farming with tokenized stocks on @Uniswap Robinhood and the economics have been way better than I expected:
Fees I earned (600%+ APR) heavily beat IL.
The setup is pretty simple:
- buy a stock I’m confy holding
- pair with USDG
- LP around a range (narrow one) where I think the stock will trade.
If the stock rallies, the LP gradually sells the stock into USDG. So compared to simply holding the stock, you sacrifice some upside.
But the fees earned can be much more substantial.
I saw this happen very clearly with
$META.
I entered META around $594 and set my LP range around $560–635 (~8%