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Yes, gas fees do eat away at potential profits. Either these strategies are scaled up in yearn-like vaults so that fees become less relevant, or users wait until gas price falls below ~10 gwei to deploy and actively manage LP positions.

But I expect that these strategies will become a lot cheaper to implement once Uniswap is deployed on Layer 2.

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Guillaume Lambert
Guillaume Lambert

Written by Guillaume Lambert

Asst professor in Applied Physics at Cornell. LambertLab.io PI and proud father. Interests: Biophysics, Math, Crypto, and Options (often all at the same time).

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