Hello all, concerning the impermanent loss (farming in dex), can

Question

MultiversX - Community

Tarek S.

Hello all, concerning the impermanent loss (farming in dex), can

the egold value only go down? Or as the price goes back up the amount of egold in the LM token goes up also?
Thanks

#blockchain #cryptocurrency #elrond #english

0

26.11.2021

5 ответов

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Alex V

flightofthefox
The amount of EGLD can go up if there are more MEX...

And now there's more people selling mex than coming in...which can get worse if no people are coming in realising they actually lose money at the moment. Mex should be used for something else and traded somewhere else as well, otherwise it looks like a ponzi scheme unfortunately

0

26.11.2021

flightofthefox

Alex V
And now there's more people selling mex than comin...

It'll reach some kind of equilibrium eventually. Mex does look a bit like a falling knife at the moment but eventually the price will make it more attractive to new entrants, and there's still many weeks of relatively high rewards.

0

26.11.2021

@aa | MultiversX ⚡️

flightofthefox
It'll reach some kind of equilibrium eventually. M...

Consider joining @maiarExchange for DEX support and @mexTrader for MEX talk , please guys

0

26.11.2021

flightofthefox

@aa | MultiversX ⚡️
Consider joining @maiarExchange for DEX support an...

Whoops, 👍

0

26.11.2021

flightofthefox · Accepted Answer

flightofthefox

The amount of EGLD can go up if there are more MEX buyers than sellers. Think of it this way - when you provide liquidity - you stop owning the EGLD and MEX you put in and instead own a "share" of the total pool. If people come along and swap their EGLD to MEX then that pool has to end up with more EGLD, and less MEX in it. Your "share" of the pool will just reflect a small portion of whatever's in the pool at any given time

0

26.11.2021

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Hello all, concerning the impermanent loss (farming in dex), can

5 ответов

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