You are viewing a single comment's thread from:

RE: Robinia Swap | Understanding Freezing or Staking, Adding Liquidity (Yield Farming)

in Steem Tech & Gadgets • 3 years ago

hi @printskill

I've small question related to liquidity pools and impermanent loss.

I'm trying to wrap my head around it and based on my understanding:

  • currently price of RBS is 0.2$
  • I would add my funds to liquidity pool (pair RBS-BUSD) in relation: 1000 usd / 1000 usd

in that case I would need 5000 RBS tokens and 1000 usd worth od BUSD. Is that correct?

Now, what would happen if price of RBS would:
a) scenario one: RBS would drop down to 0.1$ (50% drop)
b) scenario two: RBS would go up to 0.4% (100% increase)

I presume that the moment I exit liquidity pool, then I would end up still with 1000usd worth of BUSD, but amount of RBS tokens would be different.
Now, my question is: how many RBS tokens would I have at the end of the day (depending on the scenario).

Enjoy your weekend buddy,
Yours, Piotr

3 years ago in Steem Tech & Gadgets by
$0.00
    Reply 2
    Sort:  
  • Trending
    • [-]
     3 years ago (edited)

    Thank you @crypto.piotr for your engaging comment. Practically I have not faced any situations before like this.

    Let me first go through the practical experience with @robinia and then let me see what happens in this scenario.

    So, at the moment I apologize for not being able to give an answer to your question. But definitely, I will go deep into your point.

    I also welcome your feedback and best answer if you have it because I am earning so many new things from your experience.

    Regards.
    @printskill

    [-]
     3 years ago 

    thanks for being so responsive @printskill

    $0.00
      Reply