Impermanent loss rounds to zero when looking at the CUB inflation bounties.
Definitely agree with that. I am also in that pool.
Less volatility in both directions; betting against the market.
Here is the part I (or you?) misunderstand. Less volatility on the upside I agree, because impermanent loss reduces the gains. But there is more volatility on the downside. Because as I said, impermanent loss is added on top of the capital loss.
If cub goes down 50%, you lose 50% of your cubs' value and you get an impermanent loss of around 5.5% compared to your busd cub holdings if you were not providing liquidity.
If you weren't providing liquidity half of your money wouldn't be in BUSD to begin with.
That's what the math fails to understand.
99% of people are going to shove 100% into CUB they aren't going to leave 50% stable.
Ohh I see. Was not assuming you would keep 100% in CUB. Makes sense now