I decided to look into liquidity provision on Uniswap to see if there were any pools that would satisfy my requirements: steady 90-day returns above 1% APR with respectable daily volume.
As it turns out, and much to my surprise - most of the pools, even those with quality coins - had very erratic 30 and 90-day return charts.
After sorting by volume and looking through about 50+ pools, I found just three that fit my criteria:
These three pools were the only ones I could find that had steady returns over the past 90 days with little to no dips into the negative.
Of course you can still make money with other pools, but you will have to wait for longer periods of time and hope there isn't any adverse market events that could kill your returns over a few days.
Please keep in mind that past performance is not in any way an indication of future performance. These charts just show that pool returns have been fairly steady over the past 90 days. There could be disruptive events that could drastically alter expected returns, so you're in no way guaranteed profits.
The problem with Uniswap pools right now is that every pool is locked to ETH. However, with Uniswap V2, scheduled for main-net sometime in the next two months, stablecoin-stablecoin pools become a reality.
Such pools almost eliminate the risk of impermanent loss that comes with ETH-only pools.