[ 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: 234 KB, 1199x757, 1519606412951.jpg [View same] [iqdb] [saucenao] [google]
25227833 No.25227833 [Reply] [Original]

Say I provide liquidity for ETH-SHITCOIN pair

> ETH moons
> I now have a lot of SHITCOIN and less ETH than before, so I lose

> SHITCOIN moons
> I now have more ETH, but less SHITCOIN than I would have if I had just held, so I also lose

I know you're supposed to offset the impermanent losses with money from the fees, but that's only 0.3% of the volume and then you're just getting a small part of that proportional to how much you've provided to the total pool liquidity.

Have any of you ever made money as a LP?
Also how can I check how much I've made from fees on uniswap? Will the fees get deposited straight to my wallet?

>> No.25228080

bump for an actual business question

>> No.25228570

bump

>> No.25228739

>>25227833
I always lose as an LP. I think being an LP is fucking dumb and the muh 500-1000% rewards meme is retarded. Just hold the token, sell for eth. The only time its good is you are holding Stable/Stable and earning passive rewards. Anything with ETH you're bound to lose

>> No.25228755

Providing liquidity by itself sucks. You only win if both coins pump. There are ways to use your LP tokens and farm liquidity with a much higher ROI. I use unicrypt for that.

>> No.25228802
File: 32 KB, 612x408, istockphoto-1138318970-612x612.jpg [View same] [iqdb] [saucenao] [google]
25228802

>>25227833
I got some liquidity for you right here, anon

>> No.25228815

>>25228755
all the pairs on unicrypt look like they are shitcoins, don't you fear getting rugpulled?

>> No.25228838

I've been using uniswap with $100k of alt coins since September, made about $7k in fees on them so far. I only provide liquidity to a couple of pairs, which mostly track ETH, so I'm not too worried about impermanent loss but yes, if it runs up to 3-400% vs ETH you'll lose 25% vs pure holding (or something like that it's in uniswaps white paper).

There's a link that tells you your total staked value and the fees earned. The fee projection table is bullshit it takes trailing 24 hours and annualizes it, should be a smoothed 7 day average annualized.

>> No.25228848

>>25227833
The bet you're making by being an AMM is basically that a sufficient fraction of the trades done against you are by customers going random directions such that the trades you get fucked on by arbitragers don't sink the whole endeavor

It's pretty unlikely that this is true for most platforms, but a lot of these platforms give you additional rewards for staking, which is why it's profitable to go after them

You can see things like the uniswap tvl collapse after the rewards period ended

>> No.25228870

It would do well in a crab market, not as well in a bull run like we are having

>> No.25228926

>>25228815
For the super high apy ones yea it's possible to get rug pulled but several of the farms there have locked liquidity so those are a lot safer. You can search the unicrypt locker to see if the team has locked it up or not and you can see when they'll unlock it.

>> No.25228928

>>25227833
This is why you do single-sided protected staking on Bancor, which guarantees you exposure to your chosen project while still allowing you to benefit from liquidity mining

>> No.25229032

>>25227833
Be an LP in BNT, without any impermanent loss. literally just number go up