Why don't you add liquidity in the Busd:dec pair? I think it is more profitable than doing it bnb:sps.
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Why don't you add liquidity in the Busd:dec pair? I think it is more profitable than doing it bnb:sps.
Cause i got spare bnb and sps so i am looking for such a pair.
As for DEC, I did put the DEC:SPS pair in tribaldex, as they are counted for the airdrop point.
Ah ok, but I guess because of the big price drop that has occurred these days, you must have a pretty significant impermanent loss in those pools right?
I added liquidity in the Dec:Busd pair in pancakeswap to not be so exposed to impermanent loss and I think it has worked so far, ahhh and it also counts for airdrop points.
I added liquidity in the Dec:Busd pair in pancakeswap to not be so exposed to impermanent loss and I think it has worked so far, ahhh and it also counts for airdrop points.
If price drop, that is value loss.
Impairment losses are referring when the pair ratio go off. For example, when one token rise 100% and the other tokens rise 10%, you will realise that you end up with more of the 2nd tokens and no longer 50% token 1 and 50% tokens 2. If you have kept the tokens, you will have more values, the different from holding the tokens and the changes in the tokens amt due to lp is called the impairment loss.
If you provide lp with one of them being the stable coin, you will face impairment losses when the token rise or fall in value as the ratio is off.
So when providing LP with pairing to stablecoin, you need to believe that the token is stable in value for the long term, if it rise too much, your impairment has been very huge.
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Yes, I know, but by providing liquidity with a volatile token pair, you are more exposed to market variations and that is what I am referring to, while doing it with a stable currency decreases that risk a bit.
I understand that you provided liquidity with SPS because it is a great bet on the future, I also believe it will increase in value in the medium term.
I understand what you are trying to say, but impairment loss is not about price movement but it is about the ratio going off. By having a USD pair LP, you have higher risk of impairment loss.
For example, you put in 50% of token A and 50% of token B.
If token A double in value while token B remain the same(stable coin), you may suffer 25% or so impairment loss(even tho neither of the token fall in price).
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Of course, the idea is to reduce the risk, we know that Dec has a parity of 1000 dec = 1 dollar and right now it is not being fulfilled, there is an inflation x10 and in the future Dec will return to its original price because the Splinterlands has a mechanism to carry it out but it has not been so efficient because everyone keeps them and on the other hand we have SPS that due to the rewards of the Airdrop will surely be lowering its price until it ends or they say an important news regarding it.
Knowing the above, I personally went for the Dec:Busd pair to reduce the risk because both dec and sps have a bearish trend in the short and medium term.
In simple,
pairing with a stablecoin
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