Recently, I have delved into liquidity providing (LP) strategies, experimenting with various methods, covering stablecoins, mainstream Crypto Assets, and some small market capitalization Tokens with high Annual Percentage Rates (APY).

On the BSC chain of Uniswap, I tried stablecoin pairs like USDT-USD1. By setting the price range very narrow, it is theoretically possible to achieve an Annual Percentage Rate of over 30%. However, this strategy requires frequent adjustments, as prices can easily exceed the set range.

For some lesser-known projects, I find that they often attract liquidity through subsidies. For example, forming an ETH-USDC liquidity pool on the ekubo platform, although the pool size is not large, small amounts of funds can enjoy quite considerable subsidies. Within the price range of 8.3%, the Annual Percentage Rate (APR) can even exceed 100%.

In addition, I also tried strategies with higher risk but potentially greater returns. On the BSC chain, the liquidity pools of certain low market capitalization tokens can achieve a daily annualized return of up to 30% if a very narrow price range is set. However, this strategy comes with high risks: when the token price rises or remains stable, LP providers can profit; but if there is a unilateral decline, the losses can be very severe.

Overall, LP strategies provide a variety of income opportunities, but they also come with varying degrees of risk. When selecting an LP strategy, it is essential to make informed decisions based on your risk tolerance and market insights. Regardless of the strategy chosen, continuous monitoring and timely adjustments are key to achieving good returns.