Do you provide liquidity?

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Welcome to another liotes mission. Today, we would like to talk about liquidity pools on Tribaldex. We are interested to know how you use these pools:

Do you use liquidity pools? How do you use them? Where do you provide liquidity? What prevents you from using these pools?

Write your answer as a comment below this post.

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Liotes Power Challenge Update

Today, the @liotes.one account owns 87 Hive Power and there are 106 LEN tokens in the pot!

A big thanks to @mypathtofire for adding 20 LEN tokens to the pot!

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Hello!!!

Currently these are my pools, I intend to add a few more pools of friends, but sometimes I have difficulties in identifying returns and quantities to see the best opportunities.

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I also have liquidity in swap.hive:sps. It pays around 50% APR in SPS tokens and in addition it's one of the pools where you earn the most fees. I agree it can be sometimes quite tricky to understand the best returns of these pools.

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Love me some liquidity pools, especially those with bonus rewards! What better way to support a project and earn yourself a little extra!

The only reason I could see for not using liquidity pools is impertinent loss. However, at this point in the bear market, the chance of things dropping too significantly doesn’t worry me, I mostly see an up trajectory in the coming months! So what better time to stack some liquidity, make some rewards and be in a great position when the bulls return!

Always dyor into any token/project before entering liquidity pools!

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I think liquidity pools are a great tool not only to earn money but to provide liquidity to some tokens. I really use them a lot.

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impertinent loss

hehe I do think at times that Impermanent Losses are fluffing impertinent at times!

Posted Using LeoFinance Beta

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Oops! What a blunder! I would say it's pertinent that those losses are impertinent, especially when you're unaware of the impermanent ones! Thanks for the correction, we'll blame autocorrect, but its more likely a Sloth issue!

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I am using just the Splinterlands and Liotes diesel pools. I am generally not such a huge fan of diesel pools in general because of impermanent loss and usually one of the tokens has a high inflation.

I made a short guide recently on how to use the Splinterlands one.

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Impermanent loss is often underestimated. As soon as you have one token that looses a lot of value, it's bad for you. I like stable pairs of tokens in these pools.

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image.png

by share, my the biggest one is Woo:SPS. by value, its dec:sps

I had Starpro:starbits, but is a major lost, I lost around 40% and I learnt that impermanent lose could go on double digit percentage

right now I prefer to put unused tokens into LP, and I am avoiding a pair that has strong in one way swap only

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I also lost a lot in the starpro:starbits pool. Well actually I ended up with a lot of starbits :-)

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I'm a huge fan of De-Fi and I almost use 5 different chains with LPs. IDK, they are like getting interest for your money in the bank ^^

PKM SPS on Hive, Stablecoin pools on BNB and Polygon, AVAX USDT on Avalanche. These are my favorite ones :)

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I like the liquidity pools on hive especially because there are no fees for adding/removing liquidity. I tend to build them on tribaldex first.

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Impermanent loss is still something that is quite complex to me, so I don't use them. I tried reading up but I still can't fully understand it. I prefer to just buy/sell/hold tokens to stake and delegate, which is easy to understand, and the APRs are still good too.

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I've been using pools a lot, lately after focusing a lot on stake, I've been putting a lot of tokens in several different pools.

I think it's a good idea for 2 reasons: the tokens are in liquid form, so if there's a big opportunity I can take it from the pools and use that token.

Another point is that depending on the pool, we win several tokens from other projects, so we can try to focus on winning some token that we want to put in stake or for some other purpose.

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The last point that you said is so "Hive-Engine" related and you can provide LP with pairing 2 tokens, and receive rewards in the third one! It works great if you have some volatile tokens that you don't care about the price, and your reward is a quality token... ;) If all tokens are great, you won the lottery! 😃

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I used liquidity pools two years ago. I'm not sure what it does, but I put SWAPHIVE: DEC at the beginning. Because the price of both increased, the value of my LP increased as well. However, as the graph continued to fall, I began to cash it out gradually. I chose to withdraw them all a year ago and place them in my card asset form.

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It is recommendable to have goals that you want to achieve by providing liquidity in some pool... Do you want more value in USD, or do you want one of the tokens? Do you like both tokens that you pair? Are you incentivized with additional rewards? Are those rewards higher than potential impermanent loss?
Many questions, but when you have a clear picture you know better why you are doing it... :)

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I am in a few LPs. One on CUB and a few more on H-E. I mainly use them for the rewards. If they don't have fairly high APYs I stay away. Most do not have enough liquidity to prevent a pretty serious hit with impermanent loss so I'm not very heavy in most. That said, I do have a decent amount in the SPS/swap.hive and there are a couple more I support like NEOX/NEOXIAN and CINE. Since I'm still in building mode of HIVE, I don't have a lot of extra to put in these.

Posted Using LeoFinance Beta

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That's a decent amount of pools where you participate... I was in CUB and Polycub with a huge stake, but my investment got devastated... Maybe the things will turn around, maybe not... We will see...

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I only use a few liquidity pools mainly for three reasons:

  1. To receive rewards that are higher than the rewards if I just held the tokens and earned staking and curation rewards on them.
  2. To earn token rewards of tokens that are different than those in the pool which I am accumulating
  3. To support projects which I am participating.
    !ALIVE
    !CTP
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You NAILED it! Great reasons and awesome thinking!
I do something similar... ;)

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Liquidity pools are a fun topic for me because it has been such a successful investment.

I became interested in liquidity pools about a year ago, exploring how daily rewards worked. The first pool I joined was CINE:SWAP.HIVE which offered (at the time) a really good return on investment. I kept growing my share and over time, I began earning almost $0.10 daily worth of token rewards. It's declined a bit since then, but since they added LGN to the daily rewards, I've been pretty happy with it.

I was invested in CENT:SWAP.HIVE and pleasantly surprised to receive 5 CENT rewards every few hours (back when CENT was actually $0.01) Even though this feature has expired, I'm still invested in CENT liquidity pool because of it's high APR, rewarding in swap.hive and swap.hbd along with CENT, CENTG, LEO and POB. All really good tokens. Rewards are about to expire on this pool, it will be interesting to see what the new batch of rewards will be (if any).

I invested in LEN:LENM because I like the token rewards, especially AWESOME and CTBSB which are both growing in value. The APR for LEN:LENM is relatively low, but I still enjoy mining these hard to find tokens. I have a 2.3% share in this pool. I've been investing any LEN tokens I come across.

My favorite right now is ALIVE:ALIVEM because it's new and the APR is very attractive. This pool rewards daily BEE tokens which are very much in demand and have the potential to go as high as 1 HIVE each.

At this point, I have about the same amount of tokens invested in liquidity pools as liquid tokens in my wallet! The high APR and the ability to withdraw the tokens as needed or desired is the way all "banking" should be done: 100% reserve banking (no fractions).

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Thanks for the great comment! The ALIVE:ALIVEM pool is HOT right now with some great APR and we are happy that we have finally got into the ALIVE tokens and made a small step in collaborating with that tribe... I hope we will raise our level of collaboration in the future...

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I hope we will raise our level of collaboration in the future

This is great to hear. I'm sure the ALIVE community will be happy about that too!

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I used liquidity pools somewhat. I mostly add liquidity to diversify my accumulation. I also do a bit of swapping through the liquidity pools (mostly from LEN to LENM). I generally do that to cut down on transfer fees (only paying for one direct swap instead of swapping to SWAP.HIVE and then trading that for the new token). Since I do mostly gaming, along with my LEN/LENM holdings, most of my liquidity participation is in SPS, SPT, VOUCHER, STARBITS, and STARPRO with some PIZZA thrown in for good measure. I also like finding pools with rewards (like LEN/LENM).

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Our idea with LEN:LENM pool was simple... To create a pool with relatively low impermanent loss (if there is any) as both tokens have stable values... This could (and probably will) change in the future, but I suppose that people will not mind a higher values of the token :)

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If I use more or less 10% of my holdings in pools.

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That's an interesting percentage... Did you calculate your HivePower and other staked tokens into that 10%?
If I think about my %, I'm not that far from you... 😃 Maybe 5-8%... not sure as I didn't calculate it

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I don't use them much. I have a bit in the LEN/LENM pool and swap LEN for LENM, but that's about it.

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Well, we are honored that you use our pool and no other! Thanks for your trust and I hope that you will enjoy rewards from the pool for a long time!

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I use liquidity pools on and off and have a tendency to get burned by them. Ie. the impermanent loss generally gets me. I put two tokens in the pool and one goes up and one goes down and the market pulls the value out of the higher tokens. ( My opinion) I believe it is because I get in ones that are too volatile. I understand LPs and use them to swap tokens a good bit. Checking on which gives better prices Leofinance or the pool. My big question is how does a liquidity pool interact with the market? When I trade with a Liquidity pool it shows a slippage. How does a pool and the market stay in sync? Does the pool actually trade in the background?
!PIZZA

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If we are speaking about Diesel pools, I will try to answer your questions...

I put two tokens in the pool and one goes up and one goes down and the market pulls the value out of the higher tokens. ( My opinion) I believe it is because I get in ones that are too volatile.

You are 100% right about this... It happens when 1 token is more volatile than another and if it goes a lot down in value, you can finish with a lot of shittokens in your bags and a big loss... That's why the best practice is to choose pools where you "like" both tokens and don't mind finishing with a lot of tokens on one side... For example, I like STARBITS and STARPRO tokens, so I don't mind having a lot more of one than another...
Another view on volatility is to pair 2 relatively "stablecoins"... For example, our tokens, LEN:LENM are relatively stable and you have very low imp. loss + earn additional rewards... or BUSD:HBD, or similar...

My big question is how does a liquidity pool interact with the market?

They should be 2 separate "markets"... This means that people can use arbitrage opportunities by exchanging tokens in the market, and then swapping in the pools, or vice versa... Sometimes, you can do it manually, and for bigger pools, I suppose that people wrote bots do to that...

When I trade with a Liquidity pool it shows a slippage.

Slippage is bigger when liquidity in the pool is lower, and it's smaller when you have bigger liquidity... Also, if you want to swap a LOT of tokens, slippage is bigger and bigger (depending on liquidity)...

I hope that this answer will help you a bit :)

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I'm currently providing some liquidity in some of these existing pools:
SWAP.HIVE/BXT: Paying in BXT for a decent ROI
SWAP.HIVE/MATIC: got some spare MATIC so I wanted to gain some profits from it
SWAP.HIVE/THGAMING and THGAMING/PIMP: offering some decent ROI and paying in various tokens!

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Nice selection of pools! I was in MATIC, but in the end, when MATIC pumped, I exchanged it for something else... :)

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I kind off regret I didn't sell MATIC when the price pumped but right now it came back to where it used to be when I first added liquidity.

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When altcoins start to go up, MATIC will be in the first rows... IMO, you will have your chance again...

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I used to provide liquidity in diesel pools, but after seeing how sometimes one of the token just drop value like free fall, losses start to appear.

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Yeah, that's very often the case and people get discouraged to use them again... It is important to pick tokens carefully and not chase the APR...

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Nope. I'm still quite new here and I'm still finding my way around. For now, I will just stake the HIVE from my posts and leave it as it is. :)

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Hehehe... That's a smart move... When you feel comfortable, you start researching other awesome stuff here on HIVE...
Welcome to HIVE! 😍

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That is a foreign world for me. I have never used one.

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Among the immense amount of things that are possible to do with blockchain tech, it is hard to try everything... :)

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Truth! I have simply never taken the time to learn what it all means! 🫣

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I don't use pools much, it's something I still have to delve deeper into.

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You are doing it right... Until you are not sure of how it works, it is better to not do it... ;)

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Do you use liquidity pools? How do you use them? Where do you provide liquidity? What prevents you from using these pools?

I ever use it. When I have some of those tokens and they are coming with more rewards. Nothing for now. It increased in a way that I don't want 🤣

LEN:LENM => LENM decreased and got LEN
SWAP.HIVE:SIM => SWAP.HIVE decreased and got SIM

!LOL

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If you like all 4 tokens than you can't lose... :) That's the best when you invest in pools where you like both tokens... I try to do ONLY those pools... No stress :)

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Off Hive I have participated in loads of farms or pools.
however with the volatility of crypto you really have to watch Impermanent Loss.

So on Hive, I only participate in liquidity pools where I have a keen interest in the project.

For example my main pool is HIQS/INK because I love the @hiq magazine and @craftink game!

image.png

Posted Using LeoFinance Beta

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That's definitely an interesting project. I also look at what tokens you get for providing liquidity. it's always good if you get both tokens for providing liqudity.

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I do use a few pools and I put them in some pools for the rewards. I have some in CubFinance and Hive Engine liquidity pools. My biggest positions are in the splinterlands and CubFinance pools. I think the Splinterland pools that have a lot of volume are the best out of all the pools that I entered though due to the fees earned to offset any IL I get.

Posted Using LeoFinance Beta

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With the SL pools you have a lot of volume which generates fees and in addition you get SPS for providing liquidity. This is enough to offset IL I believe.

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Hey, guys!

I have always been attracted to liquidity pools, despite the impermanent loss. I was constantly experimenting with them for small amounts and seeing what happened.

Now I like Hive pools with rewards, and especially how these pools and rewards are looped together. For a second layer token fanatic like me, it's perfect to run these tokens in circles. lol

I don't have a lot of money in pools right now, but I'm just getting busy with this issue.

Basically, if the tokens bring me some profit in these or other tokens that I don't get any other way, then I put them in the liquidity pool. Or if I don't profit from the token from curation, then, same action.

At this point, it looks like this:

And, of course, I really liked darmst5339's answer. Really perfect 3 points!)

!ALIVE
!PIZZA
!LOLZ
!CTP
!invest_vote

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I also like to use tribe tokens in pools especially if I don't plan to curate with them. I have some tokens in CENT:CENTG and also in ALIVE:ALIVEM. I believe diesel pools are great income options for such tokens.

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I definitely dabble in quite a few liquidity pools but generally, I don't actively seek them out. I'm not too fond of impermanent loss having been burnt quite a bit at the start of my journey here.

Nowadays, I only hold assets which are closely linked together (meaning it's likely they'll both rise/fall in tandem, or funnel tokens which just happen to come by my way which happen to have a pair together.

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It's true that the losses can be quite high if one of the tokens loses a lot of value and the other stays stable. I often try to circumvent it like that:
Let's say I get SPS and I want to stake it in SPS:swap.hive. I then first swap 50% of my sps into swap.hive and then add it. Like that it would be as if I would keep 100% in SPS.... Well it's just an idea and I believe the maths are a bit off lol

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I have a little liquidity in the SPS:SWAP.HIVE pool.

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I have also liqudity in this one.

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I did this a while ago on CubFinance, but I had a very bad experience. I had my Metamask wallet hacked, they took all the BSC I need for gas and I can't even move those CUBs anywhere. A couple of 100€ loss.
Now only occasionally on the diesel pool LEN:LENM

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Well cub was also a bad experience for me. It sounded very promising but was very disapointing in the long run.

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I'm way behind the curve on all this stuff. I need a 101 document!
!ALIVE

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Once you start to understand how it works, it's actually pretty straight forward :-)

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Thank you @liotes we have no idea whatsoever on what are liquidity pools how to use these and why, we noticed these on @beeswap though! Best+!

Posted using Tribaldex Blog

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These are great tools that can help you in many ways :-)

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Sorry for the super late reply.

I use diesel pools obviously. Who isn't using them is missing a lot.

I use pretty much all Splinterlands diesel pools, but not all at the same time.

I also use stable diesel pools, mostly the one with BUSD, although I don't have many stables there anymore.

I also use a SWAP.HIVE-SIM pool.

The Liotes pool and occasionally other pools, but I don't think I have others atm because I wanted to keep things more focused.

Like you, I use diesel pools for all their benefits:

  • swapping
  • higher purchase/sell amounts that would mess up the order book, especially where there is low liquidity
  • saving
  • investment tactic
  • fees

I use swapping for immediate actions and order books for limit orders (unless there isn't a diesel pool available).

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I see you use the whole range of options with these liq pools. I do the same and I couldn't do without them anymore I believe :-)

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I know I'm VERY late, but I want to give my answer nonetheless :D

When I joined Hive, I was VERY into Liquidity Pools. I added liquidity to lots of them, as the ROIs were great.

But I soon started to realize that almost all 2nd-layer tokens on Hive depreciate on value really fast. All the ROI I was getting wasn't enough to keep me on the green, as I was just receiving more and more tokens, but those tokens were worth less and less.

Now I've stopped participating on liquidity pools altogether, unfortunately.

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I 100% agree with you regarding tokens that are constantly going down... I was in the same place as you and lost a lot of cryptos trying to catch those APRs and not lose on value depreciation... After a while, I drew the line (like you did) and handpicked 3-4 pools where I paired tokens that I like and don't mind finishing with a lot of them in my bags...
Since then, I sleep peacefully... 😃

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