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RE: Passive Income With Crypto Now Breaking Records

in LeoFinance3 years ago

Well, first thing you'd need to learn about is impermanent loss as adding liquidity has more risk involved than simple delegations where you never lose your staked tokens, they're still in your account and staked you really only delegate the benefits of having the stake..

I think edicted wrote a post on impermanent loss, it's not a sbad as the name implies as it only gets permanent when you remove the liquidity and it basically tempers the price action. But I'm no expert on the matter either.

Edicted wrote an interesting post on it:
https://peakd.com/hive-167922/@edicted/impermanent-loss-the-one-topic-every-crypto-website-somehow-explains-incorrectly

My opinion: pooling with one or even two stable coins takes a lot of risk out of the equation and makes it easier to grasp. Especially the SWAP.HBD:SWAP.BUSD isn't very risky in my opinion

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Thank you for this! It really helps a Noob like me.

no worries, hope it helps indeed. Seems there's some misinformation going around and took me some time to grasp too :-)