Taking the bHBD-BUSD pool as an example: the price always reverts to $1.
If it goes lower than $1 temporarily, it will go back up
Higher, it will go back down.
All of that volatility simply leads to arb and trading fees collected both by the protocol and by LPs. Impossible to lose money unless you enter the LP at $1 and exit at $0.90 in the moments before it is arb’ed and rebalanced. Since bHBD is always redeemable for HBD, the price always reverts back to $1 along with HBD returning to its peg.
Posted Using LeoFinance Beta
You're talking cliches that you've probably heard from some LP owners. What do you think will happen if you enter at $1, exit at $0.90 and then the price goes back to $1? You will make more profit than those staying in the pool. The problem is that this price movement would require someone to sell all the way down to $0.90 and then buy back to $1.
Ask yourself how do you call such guy and you'll know why it can't be consistent.