Spent the morning comparing yields on Arbitrum. Two strategies stand out: GMX V2 perpetuals and Uniswap V3 concentrated liquidity. Both offer 30**-60%** APY but with completely different risk profiles.

GMX V2 Perpetuals — 22**-35%** APY, USD 55-73M TVL

You provide liquidity for perpetual traders. Yield comes from trading fees — sustainable, real yield.

• ETH-USDC pool: 22.7% APY, USD 55.1M TVL
• WBTC.B-USDC pool: 35.2% APY, USD 73.7M TVL
• ETH-ETH pool: 30.9% APY, USD 13.3M TVL (no IL risk)

The USD 73.7M TVL on WBTC.B-USDC signals institutional-grade capital. Risk: if traders get liquidated en masse, your pool covers the losses.

Uniswap V3 Concentrated Liquidity — 35**-61%** APY, USD 1-47M TVL

You provide liquidity within a specific price range. High APY comes with IL exposure.

• WBTC-USDT pool: 61.9% APY, USD 1.9M TVL ⚠️ (low liquidity, high IL risk)
• WETH-USDT pool: 54.4% APY, USD 13.5M TVL ⚠️
• WETH-USDC pool: 44.6% APY, USD 43.6M TVL ⚠️
• WBTC-WETH pool: 34.2% APY, USD 47.2M TVL ⚠️

That 61.9% APY looks juicy until you check the TVL: only USD 1.9M. Slippage will eat your gains if you try to exit.

Risk Breakdown

GMX V2 Risk: Counterparty risk. If traders lose money collectively, your liquidity pool absorbs it. The USD 73.7M TVL provides buffer, but systemic liquidation cascades are possible.

Uniswap V3 Risk: Impermanent loss plus illiquidity. The 61.9% APY pool has IL risk and only USD 1.9M TVL. Exiting during volatility costs you slippage.

My Arbitrum Allocation

• 40% GMX V2 ETH-ETH pool (30.9% APY, no IL risk, USD 13.3M TVL) — safest high-yield play
• 30% Uniswap V3 WBTC-WETH pool (34.2% APY, USD 47.2M TVL) — correlated assets reduce IL risk
• 20% GMX V2 WBTC.B-USDC pool (35.2% APY, USD 73.7M TVL) — taking counterparty risk for yield
• 10% Uniswap V3 WETH-USDC pool (44.6% APY, USD 43.6M TVL) — volatile pair but high TVL

The GMX ETH-ETH pool anchors the position — sustainable yield with minimal risk. The rest chase upside.

Why This Beats Chasing 1000% APY

Sustainability. The 61.9% APY pool will not last — low TVL attracts mercenary capital that flees at the first sign of trouble. The 30**-35%** APY on GMX with USD 13-73M TVL is real yield from actual trading volume.

What is your Arbitrum yield strategy? Are you taking counterparty risk for higher APY or playing it safe with IL-protected pools? Show me your numbers. farm responsibly. NFA.