This opportunity works well for investors who want exposure to both BTC and ETH. This portfolio rebalances between BTC and ETH as prices fluctuate.
Risks include multiple smart contract risks and potential impermanent loss if the price of BTC and ETH fluctuates significantly from the time you entered the pool.
This BTC-ETH pool is a concentrated liquidity pool, where liquidity is provided within specific price ranges to maximize trading fees (your yield). However, it carries the risk of impermanent loss (IL), which happens if the price of BTC and ETH changes significantly. You’re betting that trading fees will outweigh any IL and that both asset's prices will stay stable within a range.