At this time, Liquidity pool in which I have added my Liquidity is SWAP.HIVE:COLONY Liquidity Pool. At this time, if I talk about the Liquidity position, I have provided liquidity of 13.76480365 $hive and 17370.10434134 colony tokens and I am currently receiving 23.6251 COLONY tokens in rewards on a daily basis and this is APR: 24.78%. If I talk about my overall liquidity position, its total value in dollars is $3.452. So today I have thought of increasing my Liquidity position further because I believe that participating in the Liquidity pool or providing liquidity is a great goal and also the best way to earn good passive earnings. Before that, whenever I thought about providing Liquidity, I had many concerns in my mind about how this liquidity is provided and what is the benefit of it, but now it is going to be almost a month and in this one month I have learned a lot from the liquidity pool. Learning means my This is what I have learned and understood that if you provide liquidity, you get a lot of benefit. The position you have in liquidity will harm you at the same time when you remove the Liquidity . If you provide liquidity for the long term, you will get a lot of benefit. So I have made up my mind that the liquidity I am providing in this pool is not for my short term, but I am providing this liquidity for the long term. It has been more than one, two or three weeks. It has been more than three weeks. I have provided liquidity and during this time the market has gone up and down, but I did not have any worries because I have done this work for the long term.
Here I would also like to give this information, from my experience since I have participated in the liquidity pool, I have provided liquidity and what I have learned or what I have gained is that when you provide liquidity, you suffer both loss and profit, but the loss occurs when you provide liquidity for the short term. I believe that providing liquidity is not for the short term, but it should be a long term plan. If you provide liquidity for one year or two years, you will get a lot of benefit from it. And it is also that the market can go up or down. You can also suffer a loss. But as far as I have understood and as far as I have studied this method, it is that you never suffer a loss. You suffer a loss when you remove your liquidity. If you understand this That the market is going down, you are losing by providing liquidity and you remove liquidity, at that time I understand that you are losing, but when you take it for the long term, it benefits you in the long term because when you provide liquidity to the liquidity pool, when you take any position, then you also get the reward for providing liquidity and you also get a fee. So both of these things increase your passive earnings. So in this way, the reward that you are getting and the fee that you are getting, your assets are also increasing. Just like now I tell you that if a week ago I told you about my liquidity position, that was the same position but its value was low. Its value was $3, Something in the dollar, but at that time its value has increased by 40 cents. So in this way, this long term If I close it or remove it at this time, it is inevitable that I will suffer losses and I will not get what I am getting in terms of assets, rewards, and fees. In this way, I understand that by providing liquidity, my liquidity position is increasing and whatever I am getting in terms of rewards, I will add it back to liquidity and in this way, my liquidity will gradually increase day by day.
But I want to clarify one more thing here that there are both profits and losses in the liquidity pool. Losses occur in such a way that whenever you provide liquidity, you provide liquidity in two pairs. You have two assets and the value of both assets is the same. So if I want to give an example here, if you add your liquidity in $hive and USDT, it may or may not be possible that the price of Hive will increase by 200 times and in this way the USDT that you will invest will then affect the balance in the pair because if your $hive goes up by 200 percent to 300 percent, their value increases and the market goes up. So the USDT that you had is still the same as what you had put in the liquidity pool. The balance of both was the same, but now the price of $hive has increased by several hundred. If the price of hive has not increased, then the liquidity pool that exists in this way is affected. Then the hive that you have, then the system that is the liquidity pool automatically starts selling them. Thus, the holding that you have is giving you more profit, because if you had kept the same hive in your hold, now their price has increased, so you could have sold them more expensively due to their price increase. Thus, in providing, a token increases a lot, its price increases a lot, so the balance that you have kept in liquidity is affected and thus you have to face losses. But I think that the fee that is sometimes low, even if it is low, the person still loses, so both loss and profit go into it. But we should provide liquidity in a pool where there are more transactions, in this liquidity pool, there are a lot of transactions. There are more buy-sells in it so that we get maximum fee in its fee price and we also get more reward. So this was a small information that I have given to you. You can guess when there is profit in the liquidity pool and when there is loss. In this way, it is a market. But I think this is a great idea. It is a great work. If you participate in the liquidity pool, you get benefit. But always invest in such liquidity pools that are in the top, which are the best projects. Just like BTC has become high in Ethereum and other top 20 tokens. If you provide liquidity in them, then you will get a lot of profit in the form of money earning in the form of reward in the form of fee.
At this time, I have provided liquidity on TribalDex Exchange. Now my intention is to provide liquidity on beeswap as well and its pair will also SWAP.HIVE:COLONY. In this way, I am thinking of providing liquidity for the SWAP.HIVE:COLONY Today, I was depositing in Hive Engine but I tried again and again but my Hive was not getting deposited in Hive Engine. There was some network issue and I tried for a long time but the deposit was not getting deposited. So I thought that I will provide liquidity of more Colony tokens in the next day and my intention is to provide liquidity of at least one 100k Colony tokens before the end of 2025 and in the same way, I will increase this pair of Hive and Colony further. So I hope you like my article today. You must have been interested in the liquidity pool and if you also write an article on the Hive blockchain and you also want to provide lliquidity , then you can provide liquidity in any tribe token of your choice. Here, the most popular tokens are Script, Colony, SPS, Dark Energy crystal DEC, bee, hive,BTC, Ethereum, and many tribe tokens. You can provide liquidity in any token you want to provide liquidity in on beeswap or on Tribaldex and you can also participate in the liquidity pool of your choice. So, I hope you must have liked my article about the liquidity pool today and I am trying to increase my colony and Hive liquidity and I hope that one day, God willing, I will be able to add 100k colony tokens to the liquidity pool. Thank you very much to all of you.
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