What are the risks with liquidity pools?

achim03 in #hive-150329 • 15 hours ago

Recently, I created a post called an interesting income source on Hive – Providing Liquidity and there were plenty of interesting questions in the comment section. I explained similar things several times and I thought it might be a good idea to explain the risks related to liquidity pools in a separate post. It's not an easy task and instead of explaining what impermanent loss is, I try to show the effect through some examples.

For that I use a website that allows you to play with numbers and calculate the loss/gain you would make in different situations.

With @ph1102, I'm running the @liotes project.

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seckorama 14 hours ago

Good one. Even I understand where's the point! 😎👍
This is another useful video for Liotes Academy.

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libertycrypto27 15 hours ago

Nice and useful topic.
I, too, often use that site to simulate possible scenarios in the liquidity pools in which I have invested
@tipu curate

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2 votes

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alohaed 14 hours ago

!PIMP !PIZZA !BBH
I'd like to say I do this sort of dilligence, but I'm generally just accumulating tokens and liquidity positions for communities I support. One of my goals for 2025 was to dig into communities interact and get some sense of their "vibe".

Posted using Tribaldex Blog

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tipu 15 hours ago

Upvoted 👌 (Mana: 14/44) Liquid rewards.

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2 votes

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achim03 15 hours ago

Thanks for the curation!

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1 vote

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achim03 15 hours ago

I like this site because the results are very stright forward and understandable.

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1 vote

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aliveandthriving 15 hours ago

Great video my friend you clearly know what you are talking about have you considered setting up a course teaching through email.

It could help you build an audience that you can take anywhere and it could give you more exposure to your content and projects.

You could save people a massive learning curve as well as brand yourself the expert you obviously are or at least on the path to being.

Honestly mate i have seen many of your videos now and you make a lot more sense than most.

@achim03 Keep up the awesome work bro 👍

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This post has been curated by the Alive And Thriving Team, we curate good content in the We Are Alive Tribe that is on topic for #aliveandthriving, and it's included in our daily curation report on @aliveandthriving, plus @youarealive is following our Curation Trail.

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yeckingo1 14 hours ago

Pools are high risk but also high profit. The problem is that they take you out of range and if the range is too large the profitability is low. If the commissions are high then losses appear sometimes without having the perception until the end.
It is a game on the wire.
By the way, a very good tool.

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1 vote

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pizzabot 14 hours ago

PIZZA!

$PIZZA slices delivered:
@alohaed_(11/20) tipped @libertycrypto27

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djbravo 11 hours ago

There is definitely a livelihood in them but here we are getting more profit so people invest in them and earn money from staking so here in the crypto industry there is risk in every place without risk. Profit cannot be obtained.

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jfang003 3 hours ago

The risks are there, but I tend to think that investing when there are two tokens that I don't mind holding. It's the best way to do that. I agree that its risky to pool for a token that you are unsure about.

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