Impermanent Loss Recovery: Advanced LP Strategies to Hedge Against Volatility on Uniswap
A liquidity provider deposits $100,000 of ETH and USDC into a concentrated position on Uniswap, capturing high fees during a range-bound market. Within weeks, the price of ETH moves sharply—up 40 percent or down 30 percent. The LP withdraws their position and discovers that while fee income is positive, the net value of the tokens […]