Hi guys! I'm thinking of adding some liquidity, like Eth

Question

Hi guys! I'm thinking of adding some liquidity, like Eth

over the ERC20 network, but I don't know how IL works. Does anyone have any of the typical IL that runs when adding liquidity or any analysis regarding this to read?

#celer #cryptocurrency #english

0

29.03.2022

8 ответов

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Oli J - WON’T DM YOU

no, there will be only one bridge fee

0

29.03.2022

LeitonDuc Автор вопроса

Oli J - WON’T DM YOU
no, there will be only one bridge fee

So the fees to aggregate will be tiny

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29.03.2022

Oli J - WON’T DM YOU

LeitonDuc
So the fees to aggregate will be tiny

well, it depends on the amount you are depositing. So, if you are depositing a few hundreds, the fees will slowly eat you up if you are constantly aggregating

0

29.03.2022

LeitonDuc Автор вопроса

Oli J - WON’T DM YOU
well, it depends on the amount you are depositing....

A newb question, but why i would want to constantly aggregate ? If there any benefit to doing so?

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29.03.2022

| Keith | DM first, I will not

LeitonDuc
A newb question, but why i would want to constantl...

You could to take advantage of higher APYs on a given chain but doing so would incur a lot of gas fees

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29.03.2022

LeitonDuc Автор вопроса

| Keith | DM first, I will not
You could to take advantage of higher APYs on a gi...

Ahh so if for example I add ETH to the Avalanche bridge and then my assets spread to other chains, my APY will not be from Avax but from the other bridges, right? And to bring them to Avax again do i have to pay the fees of one Avax tx?

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29.03.2022

Oli J - WON’T DM YOU

LeitonDuc
Ahh so if for example I add ETH to the Avalanche b...

Correct, I’ve seen that some people aggregate constantly to chase the higher apy and then end up earning nothing

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29.03.2022

Oli J - WON’T DM YOU · Accepted Answer

Oli J - WON’T DM YOU

IL is not much of a concern because your depositing a single stake, but the risk likes more so in your assets being spread across chain. You can aggregate them all back to one chain, but there are bridge fees to do this which will eat into your gains. Unless you are working with big amounts (and even then there are still fees to think about when aggregating), it’s advised to set it and forget it for a little while

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29.03.2022

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Hi guys! I'm thinking of adding some liquidity, like Eth

8 ответов

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