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29021005 No.29021005 [Reply] [Original]

What's stopping you from using your entire stack to add to liquidity pools on DEXs and platforms like balancer? You can easily get a minimum of 30% roi on your investment and literally retire. What's the catch?

>> No.29021165

I have 4mil. Firstly, I don't want to "retire", that's just sad and weak. Secondly, 30% pa isn't that good in crypto really, and like any meme staking shit the returns are anything but guaranteed. In fact they are almost always just a lure to get people to buy/do something, then it gets rugged.

Then there's the issue that you would still have to keep up to date and move funds around (i.e. sell shit tokens and buy popular ones) as trends changed and volume moved on. So you're still involved just like before.

Finally, I believe those things require you to add half Eth and half tokens? Which means I would have to sell half my tokens, immediately reducing my real gains potential by half.

All in all it's not an appealing setup.

>> No.29021262

>>29021165
whats your portfolio

>> No.29021381

>>29021165
this in addition impermanent loss is still an issue

>> No.29021449
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29021449

>>29021165
You don't have to stake shitcoins. You can provide liquidity to established tokens on uniswap, even stable coins-ETH pools. Literally free money, look into it.

>> No.29021566

JOE GET THE FUCK BACK IN THE CAGE GOD DAMNIT!!!!!

>> No.29021645

>>29021005
>me human me smart me trade shiny electric coins
>me ape me fuck boy in butt

oh how we evolved.

>> No.29021722

>>29021381

Yea I don't even fully understand what that is but it put me off getting involved.

Basically you end up taking all the same risk/judgements/work in selecting coins then add a shitload of complications in tying up your funds just for another 30% or whatever? Pointless.

>> No.29021740

>>29021005
>stake $250k in liquidity pool
>liquidity pool gets hacked
>rope
They just aren't safe enough yet. Exploits every week

>> No.29021778

Impermanant loss, the real possibility of smart contract failure

>> No.29022006

>>29021381
>>29021778
Do you even know what impermanent loss is? It's a short term issue. And the point is to earn fees passively and not have to worry about holding and selling your token at the right price.

>> No.29022099

>>29022006
Impermanent loss is only a short term issue if the price of the tokens you put into liquidity ever get back to what they were when you started staking.

If the price goes up and never comes back down, you might end up seriously upside down.

>> No.29022126

>>29021005
RETVRN

>> No.29022155

>>29021005
Because liquidity mining is a literal ponzi scheme and I don't want to lose everything when all I have to do is hold BTC and LINK to make it.

>> No.29022615

>>29021005
I have $1.4MM.
Because I don't want risk having my entire net worth getting rug-pulled/ hacked/ crashed. I've worked extremely hard for my money (most of it isn't from shitcoins). It would be a fucking disaster if I lost most/ all of my money.
My /make it/ goal is $2.5MM but I'm pretty comfy at my current net worth desu. I hold a very diversifed porfolio. And I don't want to retire. Maybe I'll start a small comfy business if/ when I get tired of my work.

tldr; not worth the risk

>> No.29022721

>>29021381
You can minimize IL by only pooling similar commodities, plus fees always compensate for IL

>> No.29022744

>>29022006
I have studied it very precisely and read all the "solutions" in depth (bancor printing it away, attempts with oracles that got frontrun, different mathematical AMm models)

it is far from solved and far from temporary. Inflating it away is the current most accepted solution but that only works in a bull market like now where everyone is delusional.

>> No.29022842

>>29022099
exactly, you only make reliable money on stablecoin pairs

and the yields there are low

>> No.29022893
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29022893

>>29021165
>>29021381
bancor solves both of these, single sided and impermanent loss protection. congratz, you've just been banc pilled.

>> No.29022927

>>29022744
Impermanent loss is completely mitigated by choosing commodities with similar expected growth.

>> No.29023044

>>29022893
I've know about bancor before you you stupid pleb
print it away

>>29022927
yeah those all have low yield though

>> No.29023089

>>29022927
and the ones that don't have low yield are riskier
there's obviously a trade-off like with any money making method

>> No.29023170

>>29021740
This. I view crypto "investments" as a once in a lifetime opportunity to get a stake in some companies that will truly bring worldwide shifts in business procedures. Taking that investment and turning over partial control of the ownership to get some "gibs" is crazy when it is not 100% safe. I personally suggest simply getting money into some of these key projects and then not selling as I understand that I am one of the earliest people on the planet to get access to most of these opportunities - I know that 500-1000% gains are realistic and will continue to grow and I can stake with reputable companies in the future for passive income. No need to risk for some quick profits with exposed risk in the short term. If anyone is interested - get LINK, AVAX, FET, AGI, and ENJ and just wait a couple years.

>> No.29023278

>>29023170
Thank you sir, I wish my holy trinity stack of btc eth and link will let me make it....

>> No.29023521

>>29023044
why would the brrr backfire? it's working well so far