There are a few reasons people take these options:
- Instant liquidity - if you are staking SPS on Splinterlands, then you’ll get a 55% APR but you also have to lock your SPS for 28 days. Liquidity pools are… liquid! You can unstake instantly and take advantage of market movements
- Trading liquidity - by providing liquidity, you’re becoming a market maker and supporting the trading liquidity of that asset on another platform while getting paid fees + yield to do so
- Diversified yield - as seen with the recent rise in SPS staking, the yield can change drastically over night. In this case, it doubled the Splinterlands native staking yield but that may not always be the case. A liquidity pool simply offers another way to diversify the yield you can earn on an asset
This all being said, yes there is a different set of risk. There is also a higher learning curve. These are the trade-offs that make the APR for staking pSPS 2x higher than staking SPS on Splinterlands. Hope this helps!
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Hé man, I am definitely not trying to diss you here. It’s just not for me. And there’s nothing wrong with that. You are doing a great job, I have learned a lot through Leofinance, and you are to thank for that. Anyone invested in the LP’s, good for them and for the liquidity. I recognise that completely, but I just wanted to point out, that simple isn’t necessarily worse than more complicated… 😉
What could be more beautiful than a drop of water)... have you seen how beautiful it is?!)
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You forgot to add that it all feeds into the entire platform. The greater the success of the pSPS pool, the more it affects the other pools and all the other holdings on Polycub.
This is overlooked. People want to separate the different parts when they are all intertwined.
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Here you need a specialist in untangling tangled fishing nets)
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I think the yield on SPS in Splinterlands only doubled due to the VOUCHER price being included. Otherwise, the 20% or so from staking SPS is still there and you still get that 20% in the form of SPS.
You are correct about the liquidity but the trading liquidity isn't guaranteed. I don't really think there is that much demand for SPS because the utility on it hasn't been developed. This could change but for now, that is my view.
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I think that a yield of 20% is already a great achievement.
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If it's too good to be true, it probably is. I don't think that 10000x will last.
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You're trying to mold candy out of shit, it doesn't happen, eat it yourself.
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You're right, I shouldn't waste my time on a crazy con man who has delusions of grandeur.
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Let's just say, for the leisurely, SPS staking has everything a retired person needs)
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I would have closed all the doors to this coin and its author)
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