/biz/ - Business & Finance

>>28071986
IL can never be 100%.
Not much benefit waiting til the cycle as IL is only loss compared to potential gain, your dollar amount staked is equivalent at any entry point because you must match it with ETH.

Once you have entered if BAO moons you will have less BAO and more ETH as people trade ETH for BAO, and as this occured per trade you will have less total value than if you had just held the BAO and ETH separately - but your total stack is still worth more than when you started.

Conversely, when BAO drops your are insulated as you buy it back for less and less ETH, and if it drops back to your entry price you will have the same BAO and ETH + the fees you earned from providing liquidity.

Everything above is just the opposite if the actions happen to the ETH side - this is just a basic part of how liquidity works in uniswap / sushiswap, and nothing to do with BAO.

You can stake any of the pairs in the menu to earn BAO currently during its distribution phase. Your BAO gains may "offset" the potential gains loss that you had while providing liquidity (given that you did, indeed, hold and make 0 actions) but it is not a mechanism intended to offset this in the long term, and as rewards drop in the coming halvenings it will be less realistic to expect these gains to offset all potential IL movements.