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22396800 No.22396800 [Reply] [Original]

If I put 10k in this, I earn 1k a week? what about this impermantent loss shit

>> No.22397126

>>22396800
Think of it like this, if one of your coins goes up, it's like you're buying a little bit of the other coin. So, if one coin does well you'll start to lose it and buy the other one. If one of your coins does poorly, you'll start to buy it and lose value in your better performing coin.
Ideally you pick something that will stay matched to the other asset. If you pick something that swings back and forth it's like you're always getting a shitty deal on your token. Selling the better asset when the price goes up, then buying back in when the price is higher as your other token increases. If the fees makeup for this you're in the green and if they don't you're in the red. You really miss out if one asset goes to shit or one shoots up because you end up with a ton of the shittier asset and almost none of the good one.

>> No.22397271

>>22396800
To add to what anon >>22397126 said, the 98/2 match means it's pretty much just tied to the price of BAT. YFV could dump 20% and the pool loses 1% in value. If BAT moons, the pool captures most of that value, but it gets stored in YFV
Also, the 1k per week is paid in YFV, if that has any bearing on your decision. A lot of anons on here just immediately dump the YFV, which is why the price isn't going up. Price of YFV doesn't matter very much to farmers since $1k worth of $20 YFV is worth just as much as $1k worth of $40 YFV, assuming you immediately sell the YFV on Uniswap or Hotbit

>> No.22397435

>>22397126
>>22397271
this is unironically very helpful, thanks frens

>> No.22398116

>>22397126
Ok you’re really good at discerning the meaningful bits. I have another question.

Let’s say I’m pooling that ETH/USDT on Uniswap liquidity pools. I should be generating fucktons of fees. However, if ETH moons relative to USDT, I’m losing out on the amount of ETH I have originally staked?

Furthermore, if both assets return to their exact ratio of when I sold, that’s the only way I’ll be returned the full sum of my initial (disregarding profits from fees)?

Furtherfurthermore, if ETH dumps in above situation & I sell, logically I should come out ahead in raw ETH satoshis?

If anyone can answer this, I will be very thankful. Godspeed.

>> No.22398527

>>22397435
Thanks for letting us know anon. I owe a lot to this board and it feels good to give back