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Liquidity provision on decentralized exchanges carries structural risks that keep most capital on the sidelines.
Price divergence between paired assets reduces LP value relative to simply holding. This is the single biggest reason people avoid LPing.
Static ranges in concentrated liquidity pools require constant active management, or capital sits idle earning nothing.
Combining LP positions with perpetual hedges requires multi-protocol coordination and constant monitoring, which most people don’t have the time or expertise for.
Manually reinvesting earned fees introduces delay and gas cost drag, quietly reducing long-term returns.
These factors make DeFi yield generation impractical for anyone who can’t dedicate full-time operational bandwidth to position management, which is most people.

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The Choice People Are Forced Into

Without a tool like SolHedge, capital deployers are stuck choosing between:
  • Safety: hold cash, earn nothing
  • Yield: accept IL risk, hope volatility doesn’t hurt too much
SolHedge gives a third option: earn fees and protect your capital, automatically.