LP risk/reward

[Anonymous No.14882997]

>Should I buy a share or get more LINKs and stake them on LP instead?
Current price of a share on the DEX is ~4000 LINK

>Buying 4000 LINKs
If all LP nodes generate 5% returns, our 4000 linkies staked on LP will generate ~150 LINK annually after 25% fees. If the node gets too popular among stakers then we could get even less due to profits being washed out.

>Buy a linkpool share
If we were to buy a share as opposed to owning 4000 LINK then we'd get ~31.25 LINK for every 10 million LINKs staked on linkpool (once again, this is assuming that all LP nodes generate 5% ROI annually). Therefore, LP shares will not be worth it unless 50m LINKs are staked on LP nodes (although the number could go lower if other LP services turn out to be lucrative).

It doesn't matter what's the actual node ROI - the proportions will remain the same

[Anonymous No.14883024]

>>14882997
Didn't read, fuck you. Is it worth it or not?

[Anonymous No.14883161]

Once Chainlink reaches a level of maturity the money's going to flow to nodes much like how we speculate on altcoins as BTC becomes 'too expensive'

Not all nodes will be equal. Only a select few will be god-tier while a good majority will probably have negative ROI (again, much like the crypto landscape we have today).

Throughout the year, people would probably move their stacks around different nodes servicing different industries as an attempt to maximize their ROI.

Linkpool have since lifted themselves from literal whos to a pioneer within the space providing services that a lot of nodes will use years from now. Their shares are currently the only option for any retard to have partial ownership of nodes that will eventually be god-tier.

No matter how saturated LP nodes get due to high popularity, owners always get the cut first prior distribution - there will be no 'washing out' of profits

[Anonymous No.14883213]

bump

[Anonymous No.14883532]

Owning 1 LP will grant you

(1 / 1000 / 4000 ) * 10% of the whole network’s revenues if lp manage to capture 10% of the market like they plan. Whilst also allowing you to easily stake 10k+ at some point.

Owning 4k link you will need to find some other way to stake it and it will grant you (4000 / total staked links on the market) of the revenues. How much do you expect that to be? Your call. Obviously, this neglects the fact that some nodes will reward more than others, but unless you stake on your own node, that should be similar.

[Anonymous No.14884479]

>>14882997
LP is a nice speculative play too. There was so much dumb money rushing into Link at over $4, buying at a >10% premium at Coinbase over Binance.
Once this dumb money finds out they can stake their Link on Linkpool they will throw money at the DEX, buying shares at 100 ETH/LP, which doesn't sound so bad when its 4 ETH for 0.04.

[Anonymous No.14884517]

>>14882997
what is staking? how do i stake my linkies? what is annual ROI of staking my stinkies with linkpool?

[Anonymous No.14884568]

I got the feeling my 2.84 LP is going to be a huge stack in 5 yrs

[Anonymous No.14884986]

>>14884517
Chainlink nodes provide API data to smart contracts, which in turn pay the Link node operators for the data they receive.
No one, not even Sergey himself knows the ROI for running a Chainlink node, as we don't know what smart contract owners are willing to pay per call or how many nodes there will be competing for the rewards.
ROI with Linkpool is -25% less than running your own node, because that is their cut for doing all the work. Except the difference won't be this large in reality, because the nodes under Linkpool's management will be among the most profitable, while your neet node would not be.