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