The reward at ETH/DEC-pool has been changed and if we stay I think we will get much lower rewareds then earlier. Is it time to leave the pool, stay or maybe contribute with more....
HISTORY
In the end of 2020 Splinterland promised to reward 274 000 DEC to Liquidity Providers at ETH/DEC. If you had 1 % of the pool you did get 2740 DEC/day. After 30 days I calculated that this was about 40 % APR for us (we are some friends having a pool there)
To get about 40 % is very good. EVEN if we get some impermanent loss because ETH went up as a rocket and DEC went down. Its all about risk and chance. For 40% I take this risk.
But now they have to change this.
They have opend up one more pool with reward DAI/DEC.
"Our hope and expectation with incentivizing a new pool is that the majority of the funds would be moved from the DEC-ETH pool to the DEC-DAI pool. due to the fact that it has significantly less risk of impermanent loss as a result of rising ETH prices"
5 FEB
DAI/DEC is launched and give 137 000 in rewards to the LP
7 MARS
ETH/DEC rewards willl be reduced to 137 000 to the LP
You can read about the change here
https://ecency.com/splinterlands/@splinterlands/dec-dai-uniswap-pool-update
WHY SHOULD I MOVE?
If I move our fund to DAI/DEC we need to
- Withdraw the pool (a least 40 USD in fee)
- Swap to DAI (40USD in fee)
- Deposit (40USD in fee)
Look at todays gas-fee limit... I calculating LOW
Is is worth to pay 120 USD to get to a pool with lower risk for impermanent loss? Its lower RISK, its not 100% that it will be worth it.
IF WE DONT MOVE
We will be stuck in a pool with higher risk for impermanent loss. But if we dont want to pay that much gas fee cost we will stay anyway. What happen if more than 50% stay....
Then our reward will reduce even more...
The reward pool has been cut to half. Then we have to hope that half of the liquidity goes to DAI/DEC. If not - we get less then 50% . So under 20% in APR....Thats not good anymore.
What are other doing?
DEC/DAI
LP - 120k USD
DEC/ETH
LP - 290k USD
'(
)
So far most people stay.
IF I DONT CARE ABOUT IMPERMANENT LOSS
The only reason (but thats a good reason) to move our funds(and pay 120 USD for it) is to avoid more impermanent loss.
But If I dont care about that loss - is it some other reason to move? NO.
New LP will probably go to DAI/DEC
Some LP will go from ETH/DEC to DAI/DEC
So maybe.....maybe....maybe we will get exactly the same rewards in the long term.
3 Choices
STAY
Hope that a lot of people moving away. At least 50% of the liquidity. Now we still get 40 % APR.
BUT we take a bigger impermanent loss risk.
Will people move when the fee is so high. I dont think so.
MOVE
Pay at least 120 USD and move the funds to DAI/DEC. But that is more then we earn in 2 months to be in the pool....
WITHDRAW
WIthdraw and go to a pool where we earn tradingfee, not special rewards. Maybe.
Should I stay - or should I go.....
Lol I’ll stay I can’t pull the funds out anyway with that type of gas fees so I don’t have a choice
It is easy to hodl - when there is no other choice.
I moved my funds out when gas fees dropped a little bit. It told me 50 USD and I eventually paid 30 USD in gas. I am glad that I got out of yet another overpromised and underdelivered avenue. I bought cards instead.
Monster Upvote SPT (Splintertalk.io)
Delegate SPT to @Monster-Curator with LeoDEX or Hive Engine and earn daily SPT payouts.Thanks for that comment and curation. I think it has been better for them to just "leave it as it was".
But investment is chance and risk. This time it was not my best bet
Well, Uniswap fee is 0.3% so just hold :)
But the fee you got from erh/dec is extremly lower then Other pool because low tradingvolume
There is a lot of gains to be made on the market right now. Nothing is guaranteed, but there are a lot of places to put that money which could yield good returns.
I can agree with that. Until now we had 40% APR and we took that . But when fee goes down we probably leave this pool. But to pay 100 USD to be able to leave - no thanks.
I also use quickswap - Matic is perfect !
Can you share how you use MATIC?
hrmm... I can try. My friend helped me. I will try to make a blogpost. I think that is easier with printscreen and so
Lol make a video, it doesn't have to be in english I can just follow what you click on :)
NO you cant. Because when you listing to me you will just laugh and think "what a noob".
Btw - Matic goes good. x4 since I (you bought it)
I will try to show something this weekennd
I know my friend send me a link that tell everything. I will try to find it tomorrow. I going for ghost and avagochi now.
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