[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 18 KB, 500x294, Whoa.jpg [View same] [iqdb] [saucenao] [google]
22400008 No.22400008 [Reply] [Original]

Previous thread: >>22396800
Thread archived before I could answer lol. Hope this helps?


>>22397435
I got you senpai ;)
>>22398116
>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?
Correct. In this scenario, you are basically selling your token as soon as eth starts to go up in price. Your average price is less than the top but more than the bottom. Alternatively you cash out and convert to USD at the top. In the second scenario you make more money because you got a better price.
>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)?
This is a complicated one someone else please chime in if I'm wrong on this but the way I understand it is when you have two currencies that are mooning or going to zero, all of those bad deals you're making on trading sort of add up. The ratio can stay the same but in either case you'll have less tokens. If the prices don't change much there's little effect because the up and down movement in price cancels out the effect of trading against the market. But if you're always trading badly in one direction you end up with less.
>Furtherfurthermore, if ETH dumps in above situation & I sell, logically I should come out ahead in raw ETH satoshis?
I'm not certain what you mean exactly. Is eth dumping while you're providing liquidity or while you're holding? You always make more by making trades and timing the market as long as your volumes are high enough the eth gas fees aren't too much of a concern.
Liquidity works best if your assets are both trading sideways.

>> No.22400495

Alright, everyone meet back here in a year and a half and explain all of this to me again.

>> No.22401185
File: 363 KB, 1265x1265, BDB44B43-8542-46A7-AFE3-6D6C3590D8D6.jpg [View same] [iqdb] [saucenao] [google]
22401185

>>22400008
Holy shit Senpai you’re awesome. Checked near-digits.
2nd situation: can’t believe that’s what happens but makes sense that all the bad deals result in you having less overall tokens.

I see now that sideways trading is good. So this entire crabbing market right now CAN be a good thing. :D

3rd situation: you have ETH/USDT pair, so ETH dumps. Your essentially get a stronger stablecoin USDT, by selling the dumping ETH then maybe buying it on the way back up. Thus maybe you’d end up with more ETH at the end of the day? Also I’m wondering about selling if ETH dumps while you’re pegged to a stablecoin, technically you’re better off than just hodling the dumping ETH, correct? How much better off are you, exactly? (I guess that is my question)

>>22400495
I think I understand what he’s saying. Which is great.


Thanks for the thread(s) anons