Ya
But I do not understand how can moving assets to cub-bnb farming pool
good for you with bnb rising up.
Do you get some bnb or what ?
I harvest only cub
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Ya
But I do not understand how can moving assets to cub-bnb farming pool
good for you with bnb rising up.
Do you get some bnb or what ?
I harvest only cub
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That's the opposite of what happens. You buy a share of the liquidity pool in the form of LP tokens. The composition of the pool fluctuates as the price of each token on the markets moves thanks to traders moving tokens in and out of the pool. If the price of BNB goes up, the ratio of the number of BNB tokens in the pool relative to the number of CUB tokens in it will go down. When you sell your liquidity pool tokens in the end, you'll end up with more CUB tokens. That's how BNB becoming more expensive benefits you in your quest to amass CUB tokens.
That's what the pool spits out as rewards. If you wish to increase your stake in the pool, you can exchange your CUB for BNB and add more liquidity to the pool.
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Actually a rising BNB price would give you more CUB, because half of the LP is BNB. When the price of BNB moves up, users in the CUB/BNB farm are selling a little BNB for more CUB to keep the ratio of the pool at 50:50. This happens automatically (AMM: automated market maker)
The opposite is also true though. If Cub goes to $10 and BNB goes to $600, you lose Cub because it tripled and BNB only doubled. I don't have a big stake in either pool. Most of mine is in the den. I just followed your logic for the last month about the stablecoins and I agreed with you. I just think this is way too rash of a decision to make after one day. Shifting these things around on a constant basis is going to lead to less trust. People will feel like they're being taken advantage of while more sophisticated people will be raking.
You have your opinion and you laid out your reasoning. I have mine and gave you my reasons as well. I'm not saying you're wrong. I just don't agree with you.
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This is the exact case I'm talking about.
You lose even more CUB in the BUSD pool.
That is not an opposite scenario it's the same scenario.
Not only do you lose more CUB: the BUSD still left in your possession is still $1,
while all the BNB you'd be left with has gone x2. This is the issue I'm trying to discuss. It has nothing to do with impermanent loss but rather how many gains we missed out on from BNB spiking.
That's one of the reasons the BUSD pool needs the higher x-factor. There needs to be liquidity there too and obviously the incentive needs to be higher to compensate for the fact it could be losing Cub along the way if the price increases. This just provides more justification to leave it where it is....
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wLEO is 100% pegged to Ethereum and that's been fucking amazing and will continue to be fucking amazing until the end of the year. It would be stupid not to ride the coattails of the top 3 coins by market cap during a mega-bubble year.
if you are in the cub/bnb pool, you must have 50% CUB and 50%BNB. During crazy bull runs (like now), you stand to gain much more holding 50%BNB than holding a stable coin (BUSD - the other pair for CUB).
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