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RE: SPT USD Value Just Exploaded

in Splinterlands4 years ago

DEC in Pools count as 2:1 for airdrop points so if you pulled out DEC from a pool that would lower your airdrop points as well. I haven't joined any pools yet but I might look into it tomorrow. Getting double points for airdrop is a sweet deal.

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I worked out my problem... I had originally put:

521,974 DEC + 455.9912 DAI into the DEC-DAI pool on Uniswap... this cost $858.15 175 days ago. The value of my liquidity is now $2,785, which is great, my investment increased... but because DEC has gone bananas in price and everyone is buying it, I now only have 1,395 DAI and 177,769 DEC. This is the whole impermanent loss thing which can be the downside to Liquidity Pools.

The lower amounts of actual DEC affects my airdrop points... and if I had just kept the DEC by itself then that investment would be worth a lot more... but if/when DEC starts decreasing in price then it should re-balance for me automatically.

So yeah... I guess you need to figure out if you think DEC will continue to increase in price or not... and if so, maybe the LPs aren't the way to go right now.

Thanks for coming back to tell me.

I'll be staying away from pools. I think its likely that DEC eventually comes back down.

You're very welcome!