I have been in the Defi space for only a few weeks and tried to read as much as I can. However I can’t find an economic reason why I should provide liquidity to anything that is not a stablecoin pair. My case – imagine you enter a pair with any two coins, *NOT* stablecoins:
* **Bullish** scenario: one of the two tokens goes up. Enter impermanent loss. yes, you make some money from the fees, but you will likely receive them in the “losing” token. Also, if you had hedl, you’d had make more money
* **Bearish** scenario: like above but in reverse
If nothing happens, you have made a yield out of the tx fees. But why take the volatility risk and just yield farm in USDc/DAI for example?
The only reason I can see for joining a volatile pair is due to the rewards that some exhanges drop on top of the tx fees (like QuickSwap, etc). Or to “support the project” but it’s hardly an economic reason without proper incentives.
Am I missing something out?