The Real Returns on Uniswap: What LPs Actually Earn (With Examples)

Everyone wants to know: "How much money can I actually make from Uniswap liquidity pools?" The answer isn't a simple percentage—it depends on the pool, fee tier, volume, and how you manage your position. But we can show you real numbers from actual pools.

This guide breaks down real returns from actual Uniswap pools with specific examples, daily fee income calculations, and net return data. You'll see what LPs actually earn from popular pairs like ETH/LINK, ETH/INJ, and ETH/USDC—not theoretical APRs, but real numbers based on actual pool data.

By the end, you'll understand what returns to expect, how to calculate your actual earnings, and why tracking real performance matters more than advertised APRs.

Why Advertised APRs Are Misleading

Before we dive into real numbers, understand this: advertised APRs are almost always wrong.

Common problems with advertised APRs:

1. They show gross fees only (ignore impermanent loss)
2. They use peak volume (not sustained averages)
3. They ignore gas costs (which eat into returns)
4. They assume optimal conditions (price stays in range, volume sustains)
5. They don't account for opportunity cost (what you could earn elsewhere)

Real returns are typically 30-60% lower than advertised APRs once you account for all factors.

This is why tracking tools are essential—you need to see your actual returns, not theoretical ones. Start tracking with PoolShark to see your real performance across all positions.

Real Example 1: ETH/LINK Pool (Blue-Chip Pair)

Pool Details:

• Pair: ETH/LINK
• Fee tier: 0.05%
• Total Value Locked (TVL): $45 million
• Daily trading volume: $12 million
• Volume-to-TVL ratio: 0.27
• Date analyzed: December 2024

Fee Income Calculation:

Daily fees generated:

• Volume: $12,000,000
• Fee tier: 0.05%
• Daily fees: $12,000,000 × 0.0005 = $6,000/day

Per $1,000 LP capital:

• Your share: ($1,000 / $45,000,000) × $6,000 = $0.133/day
• Monthly: $0.133 × 30 = $4.00/month
• Annualized: ($0.133 × 365) / $1,000 = 4.86% APR

Wait—that's much lower than expected! Yes, because Volume-to-TVL is low (0.27). This pool has lots of capital but moderate volume.

Real Return After All Factors:

Fees earned: $4.86% APR

Minus impermanent loss:

• ETH and LINK are correlated but not perfectly
• Over 30 days, IL typically: -1.5%
• Annualized impact: -1.5%

Minus gas costs:

• Add liquidity: $50 (one-time)
• Remove liquidity: $50 (one-time)
• If held 1 year: $100 / $1,000 = -1%

Net return:

• Gross APR: 4.86%
• Minus IL: -1.5%
• Minus gas: -1.0%
• Real APR: ~2.36%

Verdict: Modest returns, but very low risk. Good for conservative LPs.

If You Had $10,000:

• Daily fees: $1.33/day
• Monthly: $40
• Annual (gross): $486
• After IL and gas: ~$236/year (2.36% real return)

Not terrible, but not exciting either.

Real Example 2: ETH/INJ Pool (Mid-Cap Altcoin)

Pool Details:

• Pair: ETH/INJ
• Fee tier: 0.30%
• Total Value Locked (TVL): $8.5 million
• Daily trading volume: $6.2 million
• Volume-to-TVL ratio: 0.73
• Date analyzed: December 2024

Fee Income Calculation:

Daily fees generated:

• Volume: $6,200,000
• Fee tier: 0.30%
• Daily fees: $6,200,000 × 0.003 = $18,600/day

Per $1,000 LP capital:

• Your share: ($1,000 / $8,500,000) × $18,600 = $2.19/day
• Monthly: $2.19 × 30 = $65.70/month
• Annualized: ($2.19 × 365) / $1,000 = 79.94% APR

Much better! Higher fee tier and better Volume-to-TVL ratio.

Real Return After All Factors:

Fees earned: 79.94% APR

Minus impermanent loss:

• ETH and INJ are less correlated
• Over 30 days, IL typically: -5%
• Annualized impact: -5%

Minus gas costs:

• Add/remove: $100
• If held 1 year: -1%

Net return:

• Gross APR: 79.94%
• Minus IL: -5%
• Minus gas: -1%
• Real APR: ~73.94%

Verdict: Strong returns, but higher IL risk. Requires active management.

If You Had $10,000:

• Daily fees: $21.90/day
• Monthly: $657
• Annual (gross): $7,994
• After IL and gas: ~$7,394/year (73.94% real return)

Excellent returns, but requires monitoring.

Real Example 3: ETH/USDC Pool (Most Liquid Pair)

Pool Details:

• Pair: ETH/USDC
• Fee tier: 0.05%
• Total Value Locked (TVL): $120 million
• Daily trading volume: $85 million
• Volume-to-TVL ratio: 0.71
• Date analyzed: December 2024

Fee Income Calculation:

Daily fees generated:

• Volume: $85,000,000
• Fee tier: 0.05%
• Daily fees: $85,000,000 × 0.0005 = $42,500/day

Per $1,000 LP capital:

• Your share: ($1,000 / $120,000,000) × $42,500 = $0.354/day
• Monthly: $0.354 × 30 = $10.62/month
• Annualized: ($0.354 × 365) / $1,000 = 12.92% APR

Moderate returns despite high volume (competition from large TVL).

Real Return After All Factors:

Fees earned: 12.92% APR

Minus impermanent loss:

• ETH and USDC are uncorrelated (ETH moves, USDC stable)
• Over 30 days, IL typically: -2% (if ETH moves 10%)
• Annualized impact: -2%

Minus gas costs:

• Add/remove: $100
• If held 1 year: -1%

Net return:

• Gross APR: 12.92%
• Minus IL: -2%
• Minus gas: -1%
• Real APR: ~9.92%

Verdict: Solid, consistent returns. Lower risk than altcoin pairs.

If You Had $10,000:

• Daily fees: $3.54/day
• Monthly: $106.20
• Annual (gross): $1,292
• After IL and gas: ~$992/year (9.92% real return)

Good for conservative LPs seeking steady income.

Real Example 4: USDC/USDT Pool (Stablecoin Pair)

Pool Details:

• Pair: USDC/USDT
• Fee tier: 0.01%
• Total Value Locked (TVL): $85 million
• Daily trading volume: $180 million
• Volume-to-TVL ratio: 2.12
• Date analyzed: December 2024

Fee Income Calculation:

Daily fees generated:

• Volume: $180,000,000
• Fee tier: 0.01%
• Daily fees: $180,000,000 × 0.0001 = $18,000/day

Per $1,000 LP capital:

• Your share: ($1,000 / $85,000,000) × $18,000 = $0.212/day
• Monthly: $0.212 × 30 = $6.36/month
• Annualized: ($0.212 × 365) / $1,000 = 7.74% APR

Low APR but very safe.

Real Return After All Factors:

Fees earned: 7.74% APR

Minus impermanent loss:

• USDC and USDT are stablecoins (minimal IL)
• Over 30 days, IL typically: -0.1%
• Annualized impact: -0.1%

Minus gas costs:

• Add/remove: $100
• If held 1 year: -1%

Net return:

• Gross APR: 7.74%
• Minus IL: -0.1%
• Minus gas: -1%
• Real APR: ~6.64%

Verdict: Low returns but extremely safe. Minimal IL risk.

If You Had $10,000:

• Daily fees: $2.12/day
• Monthly: $63.60
• Annual (gross): $774
• After IL and gas: ~$664/year (6.64% real return)

Safe but modest. Better than savings accounts, lower than riskier pairs.

Real Example 5: ETH/RENDER Pool (Trending Mid-Cap)

Pool Details:

• Pair: ETH/RENDER
• Fee tier: 0.30%
• Total Value Locked (TVL): $4.2 million
• Daily trading volume: $5.8 million
• Volume-to-TVL ratio: 1.38
• Date analyzed: December 2024

Fee Income Calculation:

Daily fees generated:

• Volume: $5,800,000
• Fee tier: 0.30%
• Daily fees: $5,800,000 × 0.003 = $17,400/day

Per $1,000 LP capital:

• Your share: ($1,000 / $4,200,000) × $17,400 = $4.14/day
• Monthly: $4.14 × 30 = $124.20/month
• Annualized: ($4.14 × 365) / $1,000 = 151.11% APR

Excellent Volume-to-TVL ratio drives high returns.

Real Return After All Factors:

Fees earned: 151.11% APR

Minus impermanent loss:

• ETH and RENDER have moderate correlation
• Over 30 days, IL typically: -6%
• Annualized impact: -6%

Minus gas costs:

• Add/remove: $100
• If held 1 year: -1%

Net return:

• Gross APR: 151.11%
• Minus IL: -6%
• Minus gas: -1%
• Real APR: ~144.11%

Verdict: Exceptional returns, but requires active management and higher risk tolerance.

If You Had $10,000:

• Daily fees: $41.40/day
• Monthly: $1,242
• Annual (gross): $15,111
• After IL and gas: ~$14,411/year (144.11% real return)

Outstanding returns, but volatile. Not for the faint of heart.

Comparing All Examples: The Full Picture

| Pool | Fee Tier | Volume-to-TVL | Gross APR | Real APR | Risk Level | |------|----------|---------------|-----------|-----------|------------| | ETH/LINK | 0.05% | 0.27 | 4.86% | 2.36% | Very Low | | ETH/USDC | 0.05% | 0.71 | 12.92% | 9.92% | Low | | USDC/USDT | 0.01% | 2.12 | 7.74% | 6.64% | Very Low | | ETH/INJ | 0.30% | 0.73 | 79.94% | 73.94% | Medium | | ETH/RENDER | 0.30% | 1.38 | 151.11% | 144.11% | High |

Key insights:

1. Volume-to-TVL ratio matters most—higher ratio = better returns
2. Fee tier helps but isn't everything—0.01% tier with high volume beats 0.30% with low volume
3. IL impact varies—correlated pairs have less IL
4. Real returns are 5-10% lower than gross APRs typically
5. Risk and return correlate—higher returns come with higher IL risk

What About V3 Concentrated Liquidity?

The examples above assume V2-style full-range liquidity. V3 concentrated liquidity can 2-4x these returns with proper range management.

V3 Example: ETH/INJ with Concentrated Liquidity

Same pool, V3 approach:

• Instead of $1,000 full-range, use $1,000 concentrated
• Set range: Current price ±10%
• Capital efficiency: 3x
• Same fees, 3x less capital needed

V3 returns:

• Gross APR: 79.94% × 3 = 239.82%
• After IL and gas: ~220% real APR

But: Requires active range management. If price moves outside range, you earn nothing until you adjust.

This is why V3 LPs need tracking tools—manually monitoring ranges and adjusting positions is impossible. Start tracking with PoolShark to optimize your V3 positions automatically.

Factors That Affect Your Real Returns

1. Volume-to-TVL Ratio (Most Important)

High ratio (>1.0):

• More fees per dollar of capital
• Better returns
• Target these pools

Low ratio (<0.5):

• Less fees per dollar
• Lower returns
• Avoid unless other factors compensate

2. Fee Tier Selection

Match tier to asset:

• Stablecoins → 0.01%
• Blue chips → 0.05%
• Mid-caps → 0.30%
• Exotic → 1.00%

But check volume distribution—don't assume higher tier = more returns.

3. Impermanent Loss

Minimize IL:

• Use correlated pairs
• Avoid uncorrelated pairs
• Monitor price movements
• Consider IL when choosing pairs

4. Gas Costs

Optimize gas:

• Use Layer 2 networks (Arbitrum, Optimism, Base)
• Avoid frequent rebalancing
• Larger positions justify gas better
• Batch operations when possible

5. Active Management (V3)

V3 positions need:

• Regular monitoring
• Range adjustments
• Rebalancing as prices move
• Optimization based on data

This requires tracking tools—manual management is impractical.

How to Calculate Your Actual Returns

Step 1: Track Fees Earned

• Monitor your position daily
• Calculate fees based on pool share
• Sum over time period

Step 2: Calculate Impermanent Loss

Formula:

• IL = 2 × √(price_ratio) - price_ratio - 1
• Where price_ratio = current_price / entry_price

Or use online calculators for accuracy.

Step 3: Sum Gas Costs

• Add liquidity: $X
• Remove liquidity: $Y
• Rebalancing: $Z
• Total: $X + $Y + $Z

Step 4: Calculate Net Return

Net Return = Fees - IL - Gas

As percentage:

• Net Return % = (Net Return / Capital) × 100
• Annualized: Net Return % × (365 / days_held)

This is tedious manually—use tracking tools instead.

PoolShark automates all of this—automatically calculating fees, IL, gas costs, and net returns across all your positions. Start tracking with PoolShark to see your real returns automatically.

Common Return Expectations by Pool Type

Stablecoin Pairs:

• Gross APR: 5-15%
• Real APR: 4-12%
• IL: Minimal (0-0.5%)
• Risk: Very Low

Blue-Chip Pairs:

• Gross APR: 10-30%
• Real APR: 8-25%
• IL: Low (1-3%)
• Risk: Low-Medium

Mid-Cap Altcoins:

• Gross APR: 50-150%
• Real APR: 40-120%
• IL: Medium-High (3-8%)
• Risk: Medium-High

Exotic/Volatile Pairs:

• Gross APR: 100-500%+
• Real APR: Highly variable (-50% to +300%)
• IL: Very High (10-30%+)
• Risk: Very High

Remember: Higher returns come with higher risk. Choose based on your risk tolerance.

Conclusion: Real Returns Require Real Tracking

Key takeaways:

✅ Advertised APRs are misleading—real returns are 30-60% lower
✅ Volume-to-TVL ratio is the most important metric
✅ Impermanent loss significantly impacts net returns
✅ Gas costs matter, especially for small positions
✅ V3 can 2-4x returns but requires active management
✅ Real returns vary widely by pool type and conditions

The bottom line: Uniswap liquidity pools can generate excellent returns, but success requires:

1. Choosing the right pools (high Volume-to-TVL)
2. Understanding real returns (not just gross APRs)
3. Managing positions actively (especially V3)
4. Tracking performance (fees, IL, gas, net returns)

Manual tracking is nearly impossible across multiple positions and networks. This is why successful LPs use tracking tools.

Ready to see your real returns? Start tracking your positions with PoolShark to automatically calculate fees, impermanent loss, gas costs, and net returns across all your positions—free for 7 days, no credit card required.

Want to optimize your returns? Check out our guides on fee tier optimization, Volume-to-TVL analysis, or LP strategies. Get started with PoolShark to track your real returns automatically.