Jongo's DeFi Journey. Is It Really....A Loss?

in LeoFinance2 years ago

defi.png

I'm fascinated by crypto!

I think that goes without saying, every one that's on this blockchain believes, we are at the beginning of something that is going to change our lives...

Part of my crypto journey has been to avoid MetaMask and Ethereum based projects at all costs lol And of course, that has meant that I've ignored or failed to capitalize on certain DeFi projects along the way.

Story time.....

I remember when @LeoFinance released Cub Finance. This literally MADE me dive in and actually attempt to learn about DeFi. I understood the basics but still, hated using anything other than Hive. I'm a big user experience kind of guy, so if I feel I need a PHd in computer science to navigate around a platform, I generally close up shop and leave.

But CubFinance made me dig in! And I'm glad I did :)

Which brings me to my first 'lesson' in DeFi - Impermanent Loss.

Ooooh....Scary!!!

This was the big bad risk when it came to DeFi. But let's see what this term even means...

According to LeoGlossary:

LeoGlossaryImpermanentLoss.png

DeFi pools require us to put the equal amount of two tokens to provide liquidity. And I get the definition because, sadly in the history of DeFi there's been a lot of rug pulls and scams. Sure, it'll pay you 100000% APR, but you have to shell out a bunch of high value assets like Ethereum or Bitcoin, and match it with the 'opportunity' coin lol

Well, you can guess what happens when the owners and creators of these pools have a whole bunch of BTC or ETH.....The pulling of rugs occurs LOL

However here's what I've learned over the years....There is never impermanent loss when you are bullish on both tokens!

Which brings me to my latest obsession in crypto....TribalDex liquidity pools!

Why is this all I'm thinking about these days?

Reason #1 - It's on Hive!

Which means, no MetaMask, no Ethereum and no fees! Hallelujah!

Reason #2 - There Is No Loss For Me

Why? Because I'm currently in 2 TribalDex pools...

LiquidityPositionsTribaldex.png

Follow me here....

I'm bullish on a few things in crypto, Hive being one and #Splinterlands being another.

Would I cry myself to sleep if....I received more Hive than SPS if I removed liquidity from a pool? Or would I pound dirt if I got more VOUCHER rather than Hive down the road if things go crazy?

Nope. Whichever way you flip it, if I lose or gain either of the tokens in the pools I'm in...I can't call it a loss!

This is what DeFi means to me...I'm stacking some fantastic APR by providing liquidity in 2 pools that contains 3 tokens I'm obsessed with. So if it all goes to hell, and I earn more or less of one when I remove myself from the pools...Doesn't hurt me at all.

Such a win!

And oh yeah, by the way....Did I forget to mention....It's on Hive which means...No fees :)


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The rewards earned on this comment will go directly to the people( @jongolson ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.

Looks like you're on to a winner there @jongolson!
You are most certainly going to make a "stash"!

Thanks for checking out my content! HSBI coming your way :)

!CTP

You got me looking into this.. Now I am earning 10 sps a day.

I am hoping to get enough to earn the 35 a day I was earning from the air drop soon.

!PIZZA

Lets go!!!!!

Yeah it'll be a climb for me to reach those old levels but it works and seems to be stacking right now nicely.

!CTP

I'm definitely with you on the part about wanting to leave when it feels like you need a PhD in computer science just to participate. And I look at that sort of thing while listening to people talk about "defi as mainstream." Yeah, good luck with that, in a world where the standard for ease-of-use is "log in with Facebook."

CUB Finance is the only thing I have a stake in, and the majority of that is because I got an airdrop. I've already written it off as a 100% loss, so anything from here is an improvement!

=^..^=

I'm grateful for CUB because it pushed me into learning this stuff. But as soon as I found a HIVE alternative, I jumped on it lol

!CTP

Hive puts the H in HODL and the Decentralized in Defi!
I mean...
You know what I'm trying to say...

!LOLZ
!CTP

ha ha ha ha ha Yessir! Absolutely!

!CTP

Great !MEME


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Earn Crypto for your Memes @ hiveme.me!

I'm glad that you wrote about this. I know people we know need some introduction to diesel pools.

I think when I hit Dolphin my next step will be looking at liquidity pools. Thanks as always for sharing your journey.
!CTP

Good post, Jon. I have wanted to learn about liquidity pools, and you have helped me to understand them better.
Thanks!
!CTP

Naa, it's only impermanent ;)

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What a fancy word that is huh? lol

!CTP

CubDefi was my first ever. I invested just $50 from the reward I earned from a Twitter event last year. Unfortunately, it went downhill. I already ignored my Cub since then coz I already considered it a loss. LP is fine, but I avoid doing that.

They still have big plans for that and PolyCub, so for me, it's just a sit and hold :)

!CTP

Awesome! Anyway, thanks for the tips. :)

The development of cub and polycub has been crazy interesting. I'm loving it.

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I agree with this. It's not a loss until you sell and to be honest I see #Splinterlands being one of those games that will thrive for at least the next few years. Imagine the return on a defi pool you add liquidity in now and don't touch for years.

That's my thinking too. I'm just stashing more and more in there!

!CTP

yap, skipped being rich or rugged just because i started crypto on hive and could not use anything when thinking about those crazy fees.

i am not even sure what is changing in cub and do i have to get my keys for "metamask" after my reinstallation of OS few weeks back.

jumping on SPS/Hive pools was easy because of being ok with having more hive or sps makes no difference 😁

I haven't logged into my CUB account for months lol I hope it's all still good lolol I try to avoid anything Metamask related like the plague.

!CTP

Wen CTP pool? Seems like that one would be win-win for CTP.

Would make trading CTP cheaper.

Downside is it costs BEE though and rewards to attract LP.

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We were always hoping the community would come together and we could fund it together. It's not cheap to start those pools lol However we do have some market makers working on the tokens which helps a bit :)

!CTP

Just like you I too avoid the Ethereum based tokens as they are low cost and also waste a lot of time. I am thinking of hive and bitcoin only for the moment. I suppose DeFi and other tribe based coins may be also good as long as we do some progress. However I do think ETH is strong now.

I just hate it lol the entire DNA of the project, from being coded in a language only a few people know. So many potential problems down the road for it.

!CTP

I think it really depends. At some point, paying for things tends to happen in fiat and prices tend to go down over time for crypto. At least that is the case in this bear/sideways market.

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Ahhhh but here on Hive, we can earn our way into anything we want to invest in :)

!CTP

With investments in Defi I am not worried about the impermanent loss but about the sky-high fees and the deterioration of the farming currencies.
That's why Hive is so cool. No fees and earning coins that we all know.

Exactly, the fees of getting in and out of a pool....Insane.

!CTP

I was heavily invested in Luna and UST before the crash. I was also invested in multiple altcoins. The draw downs were really painful and indeed I have lost a good amount of motivation to stay on top of the crypto space. It is true with what they say, only invest in what I am able to afford to lose.

Oh wow, so sorry to hear that. I wasn't even knowledgable about Luna before the drama and the crash. Just crazy what happened.

!CTP

Anything on Hive and Hive Engine is just awesome! When will the other networks learn or move over?! !LOL I think I will keep my stash here!

LOL I'm not holding my breath for them lol

!CTP

I am currently in 3 pools, small amount though
PIZZA:STARBITS, CENT:POB and SWAP.HIVE:SIM

But, still learning about it.

stash & upvoted on listnerds :-)

POB huh, is that still an active project?

!CTP

🤣 !LOLZ I'm in the sps:hive pool, too. Exactly for the same reasons. I believe in both for the long term!
!ALIVE
!PIZZA

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Authoritis!

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Yeah it's a no brainer, when we love both tokens in a pool!

!CTP

💪🙌💜🙌💛🙌

I need to keep it simple and straightforward because most of this is way above my head. Thanks for sharing.

TribalDex pools are as straight forward as it gets and the best part. No fees lol

!CTP

Two things made me fall in love with hive... the first was the community and the second is exactly escaping the metamask and the very high fees of some networks!
As for the LPs, I'm also in one of them and for the same reason you said... I don't care how the liquidity will come back to me... I trust and believe in both sides of the LP.
Thank you for sharing and showing everyone inside and outside the hive the advantages of this wonderful network we are a part of!
!1UP

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Absolutely. When both sides of the pool are a win, there is no loss!

!CTP

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I often hear the "volatility" argument as the reason why people refrain from entering crypto. Before, I just kept silent for I didn't know how to respond. Realizing the role of stable coins, I think that's why Hive has an HBD.

stash

Thank you for sharing on this. It really got me to relook at the pools! All the best to you and time for me to get something going with the pools.

What an excellent way to explain what your journey's been like!

Mine also started because of @LeoFinance, with CudDefi giving me that push to dive into DeFi. And I also started with diesel pools on Tribaldex!

I still have lots of questions, but I like the journey. And It's getting easier everyday when it comes to the computer science thing...

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