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RE: Advanced Splinterlands Pre-Sale Math - SpreadSheet Fun

in PeakMonsters3 years ago

Hi @xxxdoodzxxx

Your amount of SPS and DEC in the Liquidity Pool (LP) changes all time if the price of the tokens are moving up or down. In LP there is the possibility of impermanent loss.

The pool keeps the value each time 50:50. If DEC goes up and SPS stay the same or go down... your Pool decreases your DEC amount and increases your SPS.

If you are in a LP with a stablecoin like DEC/BUSD and DEC gets +300% the pool decreases your DEC and increase BUSD (which stays at 1USD).
Your reward gain from the +300% would have been higher without using LP. That's the impermanent loss.

The amount of DEC in "your positions" at the aidrop snapshot time counts.

I hope this helps.

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Hello @nelthari, thanks for your reply, makes a lot of sense now why the small increase from yesterday. Thank you very much.