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RE: Why I moved my CUB out of the Farm and into the Den

in LeoFinance4 years ago

I think of it as in the value in the den or pool does not matter. Then considering the incentive for being in either I get a 3x return on being in the pool. Kinda like being paid to take the loss. The pools fuel my den and if I don't put back in the den I change that over to a split on the pools again. However with BUSD-CUB I think I will lose regardless which is why I effectively move some over time into the ones that could go up together like bnb-cub , leo-bnb etc . Still loss but I think a bit less and still great incentive to keep about half of what I have in the pools.

Nice writeup.

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Interesting perspective. Are you considering your contribution to the LP as helping the community, rather than doing it to maximize profit? I can't think of another reason you would be invested somewhere you think you will lose regardless.

I am only losing if I look at my LP in isolation.. and fair enough I am quite lazy to track these things but from my first week alone I have been able to fund the Den to equal value of my entire LP. Overall I feel I am earning optimally but definitely at higher risk and I should probably remove my LP on the cub-busd specifically and re-add it at the new "norm" since I added cub at I think $3 ... If I can keep inline with the norm I am personally then reducing my impermanent loss while gaining from the amplified reward... I guess that is how I rationalize it since I don't know the ins and outs of the math or keep track really.