I still can't put my head around LPing... aside from the high initial investment required, the risk of being compromised by the price of the token itself is something that requires more understanding.
Correct me if I'm wrong, LPing is effective (in terms of paper profit) when prices of the tokens in the pool aren't so volatile?
Posted Using LeoFinance Beta
It is an effective strategy if the prices of the two assets are less volatile, or more importantly moving together. It is also effective if fees and income earned in the pool is sufficient to cover potential impermanent loss.
It definitely has risks, that need to be fully understood and accepted before jumping in. The best way to LP is with 2 assets you really like, that way price moves are unimportant as you are effectively trading your existing assets for a new asset that auto-balances your holdings between the two, and earns fees along the way.
Not for everyone, but good as part of a long term plan.
ETH has a high initial investment required, RUNE not so much as it is currently on Binance chain with much much lower fees.
Posted Using LeoFinance Beta