Uniswap Yield Farming — Provide Liquidity & Earn Fees (2025)
Earn passive rewards by becoming a liquidity provider on Uniswap. Add ETH, stablecoins or popular tokens to pools and collect fees from every trade.
Start Farming on UniswapWhy Uniswap for Yield?
- Decentralized: direct wallet-to-protocol interaction, no custody risk.
- Transparent: open-source contracts and public fee data.
- Flexible: join/exit pools anytime without lockups.
- Popular Pools: high liquidity pairs like ETH/USDC generate consistent fees.
How to Start Yield Farming on Uniswap
- Connect your wallet (MetaMask, Ledger, etc.).
- Choose a trading pair (e.g., ETH/USDC).
- Deposit equal values of both tokens into the pool.
- Receive LP tokens representing your share of the pool.
- Earn trading fees automatically.
Tip: Monitor APY and be aware of impermanent loss when selecting volatile pairs.
Risks & Considerations
- Impermanent Loss: occurs when token prices diverge significantly.
- Gas Fees: on Ethereum mainnet, transactions can be expensive.
- Market Volatility: pool value may fluctuate heavily.
Learn more: Risk Management: Yield vs Staking
Alternatives & Comparisons
- Binance Staking — centralized, easy for beginners.
- Lido — liquid ETH staking option.
- Yield Farming vs Staking — full side-by-side guide.
FAQs
- How do LPs earn money?
- LPs receive a percentage of the trading fees from swaps in their pool.
- What is the UNI token used for?
- UNI is Uniswap’s governance token. It may also be used in incentive programs.
- Do I need KYC?
- No. Uniswap is a decentralized DEX — no account or KYC required.