Your cart is currently empty!
Volatility and Its Double-Edged Sword
Market volatility is a double-edged sword for liquidity providers. High volatility increases trading volume, which generates more fee income. However, it also significantly increases the risk and potential scale of impermanent loss. The ideal scenario is high volume within a relatively tight trading range. Your earnings are directly tied to market conditions. Understanding this relationship is key, as explained in any robust Uniswap Liquidity Pools guide.
