Part 6/8:
Focusing on your liquidity positions can also change your approach to risk. For instance, a typical liquidity position involving $111,000 may demonstrate a slight loss; however, utilizing income generation through liquidity pools allows an investor to earn while mitigating potential losses from holding in the market.
In this case, even with gradual price declines, consistent income from liquidity pools results in a net profit, leading to a favorable position compared to merely holding assets in the market.