1.Did I get it right, that if I provide liquidity

Question

1.Did I get it right, that if I provide liquidity

to usdt - dfi and dfi will make 2x, the dollar value of my holdings will be around + 50% 2. does the same apply to all stablecoin liquidity pools?

#blockchain #cryptocurrency #defichain #english

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18.03.2022

13 ответов

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Michael Автор вопроса

Bernd Mack
correct the basics are for all pools the same.

I just wondered because when the dfi price went up, I had then more dusd, what’s logical, but also less dfi on the other hand. Overall I had the same dollar amount in the pool before and after… I mean shouldn’t it be that I have more dusd but the same amount of dfi if the price rises and altogether a larger dollar worth if I count the dollar worth of my dusd and dfi together and compare before and after?

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18.03.2022

Bernd Mack

Michael
I just wondered because when the dfi price went up...

i recommend to just put in your values in an calculator like i linked below (advanced mode). https://whiteboardcrypto.com/impermanent-loss-calculator/

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18.03.2022

Zachary Chan

Michael
I just wondered because when the dfi price went up...

That’s what impermanent loss is in a nutshell. When the value of a coin changes up or down, the pool balances itself to maintain the original ratio and price you had going into the pool. when you join a pool, you get a special ‘lm token’ of the pool, which is your ‘share’ of the pool. The value is then calculated on this combined ‘share’ that you own, not the individual coins. So when the value of one coin goes up, the lm pool balances the quantity down because it’s more expensive now. And when the value of a coin goes down, you get more of the coin because it’s cheaper.

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18.03.2022

Michael Автор вопроса

Zachary Chan
That’s what impermanent loss is in a nutshell. Whe...

Thank you, but the value of a stablecoin doesn’t go up or down, right? So if dfi rises, I will have more usd and less dfi, but altogether the usd worth of dfi and dusd together should be MORE after dfi had risen and not the same - that’s my point

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18.03.2022

Zachary Chan

Michael
Thank you, but the value of a stablecoin doesn’t g...

Heya sorry. Late night and I juuuuust woke up. Anyway the automated market maker portion of LM is just to rebalance the ratio of coins in the pool to maintain 50/50 when coin prices change. The actual value of an lm token is calculated based on the total pool. Remember, pools are live and constantly changing because there are people entering and leaving at all times, at all coin prices. So the price of an LM token is the same for everyone at any one time, not just for your particular share. To calculate the value of 1 LM token (of any pool) is [total value of pool] / [total supply of lm tokens in pool] And you then multiply this with the number of lm tokens you own to get the value of your share of the pool.

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19.03.2022

DanieL BaptistA

Zachary Chan
Heya sorry. Late night and I juuuuust woke up. Any...

Ahaha, here, have some of mine ☕️😅

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19.03.2022

Zachary Chan

DanieL BaptistA
Ahaha, here, have some of mine ☕️😅

Thanks, and why are you still awake? Lol

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19.03.2022