In r/defi, LP performance is framed as limited more by attention and operational overhead than by gas, while commenters warn whales can borrow via lending protocol loops and arbitrage to extract fees from retail LPs.
The biggest hidden cost in LP strategies isn’t gas. It’s attention.
They fail because they require too much attention.
Checking positions multiple times a day
Unfortunately whales borrow money from AAVE and then go to big liquidity pools WETH/USDC and apply the LVR technique they do hedging and arbitraging and suck all the fees from retail investors.
So they are pushing retailers to cats, dogs, shit and rugs.
This finding is one of many signals tracked across Crypto. The live feed updates every few hours with new expert voices, debates, and emerging ideas.
← Back to Crypto