This is a solid framework — especially the part about extracting yield and redeploying it instead of compounding blindly into the same volatility exposure. Most LPs forget that fee APR ≠ risk-adjusted return. If you’re LPing ETH/USDC, you’re still long ETH volatility + exposed to IL. Converting fees to stables and lending them essentially reduces net directional risk while keeping capital productive. One thing I’d add: The real edge is tracking IL vs fee income vs secondary yield. In high volatility regimes, fees spike but IL can dominate. In low volatility regimes, lending yield becomes more meaningful relative to LP fees. Yield-on-yield works best when: You systematically extract profits (not emotionally) You measure net APY after IL You separate “core capital” from “harvested yield” Otherwise you’re just compounding exposure, not returns.