USDC , how do they become profitable? say i have 100 dollars USDC and 100 worth of hex to match it. Anyone experienced with this?
they earn the fee for the trade, which is generally .3%
.3% per trade, so if the coin is traded 100% of the available supply, you get .3% per day, but it fluctuates a lot
you can lose value as well, if the non usd part of you pair goes down, and gain value in usd if it goes up. It can be a good way to sell some hex without crashing the market if you have a lot
How will USDC gain value if it stays at a dollar all the time ?
You lose value if hex goes down, and people sell you more hex than you have usdc, and so your total value is lower, aka impermanent loss
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