Okay, will my loss even out if there is enough

Question

DeFiChain - International

Mert

Okay, will my loss even out if there is enough

liquidity in the pool?

#blockchain #cryptocurrency #defichain #english

0

04.03.2022

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DanieL BaptistA · Accepted Answer

Honestly, your loss will only be recovered with rewards from the pools in which you enter, will not be offset by just buying them again, especially because for sure, there will be a higher premium on them, since many people are wanting to buy. Entering a pool in a early stage has only one advantage, which is you enjoying the highest possible APR in them as soon as rewards kick in. As but for that, you must hold your position and do not sell. If you sell, you may cause an imbalance in the pool in case of low liquidity (which happened here), added to the premium you will for sure paid in the aquisition, since there was a high demand for very low offer in the first stages of a pool. Any big buy or selling actions will cause shifts in pools with low liquidity, and the more unbalanced a pool is, the less shares you will receive for your money also (you dont loose only in selling, also in buying, if you add liquidity in a very unbalanced pool). In Defichain wallet is not perceptible this, but think in Cake interface terms, for ease of understanding. When you add/remove liquidity there, a graph is shown to you with the stability of the pool. If you add/sell under high stability, you receive more for your money. The opposite is also true. What you experienced here, was the referred oposite. Since you sold your shares, you assumed a loss, since you sold under a very unbalanced pool (which in this case, was actually helped by you to get unbalanced). And with assumed losses, nothing can be done unfortunatelly other than a "lessons learned" moment.

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Okay, will my loss even out if there is enough

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