What's not true about LP fee farming in my research so far , also stay away from scammers and their bs.
Some scenario's to look out for , also do your own research👇👇.
Fresh wallets funded with 1 ETH or a sizable amount two days before activity isn't how real yield farmers operate — legit LPs use established wallets with real capital, not disposable ones.
Flagged/phishing-tagged wallets doing this — legitimate fee farmers aren't flagged as suspicious by the platform.
The rapid, tiny add/remove cycles (adding $5, removing $0 and grabbing tokens) don't generate meaningful fee income — the gas cost would eat any real yield on amounts that small. Real fee farming uses much larger, more stable positions.
If someone were "spreading liquidity across many pools to earn fees on all coins," you'd expect to see consistent, sizeable positions held for a while, not fresh wallets cycling in and out of the same single pool within minutes.
#Community
What's actually true about LP fee farming:
When you add liquidity to a pool (like on Uniswap/similar DEXs), you earn a cut of the trading fees generated by that pool, proportional to your share of it.
Some sophisticated LPs do run strategies across multiple pools/protocols — moving capital to wherever fee yield is highest, or providing liquidity on several pairs simultaneously to diversify fee income. This is a real, legitimate strategy in DeFi ("yield farming" / "LP rotation").
Gas costs are the price of doing that — every add/remove costs a small gas fee, so serious LP farmers only do this when the fee income outweighs the gas spent.