BTC/USDC vs BTC/ETH LP – Uniswap V3

Hey Guys,

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If you were to choose between two Uniswap V3 LPs – for a long term investment – would you choose BTC/USDC or BTC/ETH?

Of course you’d have to manage the position on daily basis, for a better price range and less IL.

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BTC/USDC generates more fees, but has more IL.

BTC/ETH generates less fees, but has less IL.

The BTC/USDC LP hinders upside potential, as it’s paired with a stable (but you get less volatility).

The BTC/ETH LP is for those bullish on Bitcoin and Ethereum, but it has higher volatility.

And don’t forget the coming merge and then sharding etc. etc.

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What would you choose and why? interested to hear your opinion.

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6 thoughts on “BTC/USDC vs BTC/ETH LP – Uniswap V3”

  1. This is a great question with some good arguments. I’d also like to know.

    For my opinion, I hate higher IL and given Etherium’s upcoming merge, it’s likely to be very volatile.

    But, you note long term so maybe that IL will even out over time?

    Reply
  2. Noob here, but I’d go BTC/ETH – if you’re focused on “long-term” then the volatility shouldn’t scare you as much as it would with a short-term focus

    Reply

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