bout 3 weeks later... this LP thing doesn't really look great at all!
I started with $199 (126 SURGE and 98 USDC) and I collected roughly $1 between USDC and SURGE in fees!
My new balance is $184.... sure I have more SURGE than USDC as the pool rebalanced itself, but it I don't understand how people make these pools worth adding any liquidity to.
You earned $1.0888 in fees in 3 weeks on $184 = 10.2% APR (not including any SURGE Dividends)
Being that SURGE is essentially a stable "bond" (fixed income instrument) and you're earning 10.20% APR + the 21% effective yield on the SURGE itself, you are doing better than any other investment
If you can beat it, definitely sell your SURGE and buy whatever bond beats that. I've never seen one that can
Also, your ticks might need to be adjusted. Not sure if you have tweaked that at all but you can tweak the closeness of your ticks for higher APR (although higher potential slippage if you don't predict it right)
Overall, I'd say your expectations are probably too high but also your ticks are inefficient
I just don't understand how it works yet, but I'm trying to. I figured there was something to tweak, it's another thing to find out how to do, and I will.
I guess my problem may be that I'm still looking at it in USD terms... Started with $199, now I have $184. I love what SURGE is and I have more SURGE than when I started 126 compared to 137, so that's awesome!
Can I change the ticks in my positions or do I need to pull it out and add liquidity again?
you’ll need to pull out and back in at the new ticks (effectively a new position)
It’s okay! Definitely a learning curve
I think your lens in USD Is where something is missing. Since SURGE dropped since the start of your LP, naturally you’ll get more SURGE
In the end you're right, I am making much better yield than a bond... and in USD terms when you add the extra SURGE I have now I only lost $4.... without counting the dividends!
Thanks
Also judging by the IL you've experienced.. you did this when SURGE was higher in USD than it was now
You've probably saved yourself some losses in SURGE terms
LP'ing is not for everyone! Only do it if you know the math
lol yes I sure have... I have more SURGE now in the LP!