There is a very good pair for investing in the liquidity pool, which is known as the safest investment and also gives very high APR profit. I did a lot of research on this, and the safest pair I found is swap.hive:swap.hbd. This is a pair that has no impermanent loss. How is that possible? You will know in this post.
For depositing #hive and #hbd, we use #hive-engine, which is an excellent and user-friendly Hive exchange that has almost every feature. But I was surprised that there is no option for investing in pools there. I will request to the developer of this exchange to add pools option as well so that we dont leave #hive-engine for this purpose. For that, I need to use #beeswap or #tribaldex.
Recently, I invested in the liquidity pool of swap.hive:swap.hbd. I invested 1.85 HBD and 9.92 HIVE. The reward ratio is very high compared to the risk. The main reason is that one side is a stable coin (HBD), whose price is fixed, and only Hive’s price is volatile. Whenever in any pair, when one coin is stable coin then that pair is more safer. Specially when it comes to hive and hbd pair which is the safest of all.
If you are already holding #Hive coins for the long term or waiting for the bull run, it’s better to invest in this liquidity pool with swap.hbd. The big reason is that your 50% amount will stay in Hive and the other 50% in HBD. The combined APR profit of both can go up to 20–30%, depending on Hive/HBD transactions.
There is no risk of loss except If the pool or platform is compromised. In this case no any pool or investment market is safe. This is the only risk with this pair otherwise only profit. What you will get if you only invest in #HBD or #HIVE?
If I talk about only #HBD, I get 15% APR just from staking, which gives no capital gain. Similarly, if I talk about #Hive, then by powering up, I can get around 11% APR. But if I invest this pair in the liquidity pool, I can get more than 20% APR. Isn’t that interesting?
Now, why is there no impermanent loss? The big reason is HBD. Because one coin is stable, the chance of loss becomes less. For example, if Hive’s price keeps increasing, then the balance automatically moves toward HBD, which works like profit-taking so overall capital gain increases.
If Hive’s price goes down, then our HBD keeps investing into Hive, which works like DCA or layering. Temporarily, your wealth may look less, but since you are holding Hive for mid to long term, you will not have any real loss. But if only you close the pool in that case you might book loss. Make sure to not close the pool if #hive price is down.
If Hive’s price falls, one day it will recover again, and your loss will become zero. So in both conditions, there is no impermanent loss. As for passive income, this is the best pair right now if APR is above 20%, I’d call it excellent.
There are some simple steps for investing in this liquidity pool.
First, log in to #Hive-engine and deposit Hive or HBD. For that, click on Deposit, select the amount, and within seconds, it will transfer from your wallet to Hive-engine. Since the pool option is not available there, you must use #Beeswap or #Tribaldex.
I usually use #Beeswap, and I used the same for this investment too. Open Beeswap, log in with your Hive account, then go to Pools and click Add Liquidity. You’ll be given an option to select the pair, type swap.hive:swap.hbd.
Enter the amount you want to invest, click Add Liquidity, and authorize with #HiveKeychain. Your investment will be done. I just invested in the liquidity pool recently, and my name is at number 22 among the liquidity providers. My goal is to keep increasing my investment in this pool and start passive earning.
Along with this, I will also keep getting capital gains because I’m holding for the long term, so I don’t care about impermanent loss. Now my main focus is passive income, and if I keep getting more than 20%, then I don’t need anything more.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Those who will interact will get my 100% upvotes. My staking is increasing. Thank you all for your time reading the content.
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