How does Yipingfang generate returns?

Yipingfang generates its return mainly from being a so-called Liquidity Provider (LP) on the Uniswap V3 platform. Being a LP in the crypto marketplace is like a market maker in a traditional financial exchange and always stands ready to trade with a counterparty. In return the LP gets paid by the trading counterparty, and these fees being paid are the main revenue source of Yipingfang. Of course there will be risks associated with being a LP, and such risks will largely be addressed/hedged by Yipingfang’s strategy, with a cost. In the end, the revenue from collecting LP fees, minus cost for applying hedging, would be the net income, a.k.a. returns, of Yipingfang strategy.