Is it worth doing liquidity mining on the stock token?

Same question

What do you mean is it worth? You see the APR's, of course it's worth :) The only "downside" is if you believe that traditional crypto will pump, under which scenario, you will lose that pump since the dtoken pools are based on a stable coin and stocks that are based on real like feeds and do not, traditionally, pump like crypto. In the contrary, if you believe that crypto will fall, LM with stable assets is good, because you will be less exposed to those bear markets. As always, risk reward ratio and "pain" tolerance of any user is the key to determine whether it worths or not to follow A or B investment strategy

The payout will be in both dtokens based on the stock u LM right? I will need to exchanges those token to Dfi b4 i could sell them in exchange right

Hi! The payout will be the same as in all LM pools, in DFI, since its the coin that the blockchain creates. You will receive also, as in all poils, some comission coming grom the DEX fees, so always some DUSD and the other dToken you have in your pool

And yes, if you want to exit the ecosystem and cash out, you will need to convert that "dust" into DFI to send to an exchange :)

So if i choose dGME-DUSD token And DUSD is a stablecoin right? So it’s less exposed to the risk or?

Back to the original thought, yes, this pair is less exposed to risk because of the DUSD pairing, and DUSD is less likely to have a lot of price volatility.

So is there any correlation between the APR and volatility? Or it’s just like that Like the higher APR has less risk or?

Traditionally yes, the higher the APR, the higher the risk.

The risk is of the price of the token or? Or that impermanent loss thing. I don’t really know how that works Because you said there’s a stable coin so exposur eto risk is less

Usually the higher the APR, the higher the risk of doing that activity. Example: Saving money in a bank account will net almost nothing. Buying U.S. bonds will net some ok but not inflation-beating rewards. Loaning USDT and other stablecoins will give you inflation-beating but not extreme rewards (ranges from 5-10% I think) Now LM can be risky, impermanent loss can hit hard if one coin swings big plus you can have a risk of two assets, which is why you will see 50% and up commonly.

Perhaps this article might give you a better understanding? https://academy.binance.com/en/articles/impermanent-loss-explained

50% and up you mean in APR or ?😅 sorry I’m just asking too much

Yes in APR.

Thanks for this

No problem, also you can search up impermanent loss explained and you will find a lot more tutorials that might make more sense to you if this was more confusing.

YeH i was actually reading that link you sent and it makes sense now Unless i have more questions 😂

Feel free to ask lol, we don't mind answering questions 😅

Yeah 🥲 I’m shamelessly asking 😂

you can model your impermanent loss here. But as you can see it's going to much much less than your earnings so it's good thing to liquidity mine! https://defichain-einstein.com Only time it's not a win is when say you enter a pool and the price does a 2x drop and you pull out the next day. In that case your IL will be much more than your earnings. But for those who stick with it weeks and months they earn way more than and the IL is insignificant in most cases by comparison.

On Cake DeFi in entire April month, I suffered an impermanent loss of USD $40 on USDT-DFI pool, but the USDT-DFI pool also generated USD$40 worth of DFI in total in April

Long term when USDT price recovers then the impermanent lost will be gone right?

You really need to compare this against just holding DFI, for that month DFI lost value so its not all IL, which is always going to happen when holding a stable coin pair

Impermanent loss is highly personal for everyone because it is dependent in the prices of both coins at the time you added liquidity to the pool. As such, the only way to mitigate impermanent loss is if the prices of both coins in a pool remain completely stagnant, therefore you lose (or gain) nothing when you exit the pool. Stablecoin pairs are always higher risk as well because one side will always be ‘stable’, while the other side of the pair is more volatile. If you gain more of the volatile coin, you can technically benefit greatly from price actions if that coin increases in value (or the opposite if the coin decreases in value). Risk can return. If you gain more of the stable coin, the value is mostly pegged or controlled. At the end of the day IL only really matters when you exit the pair, and combine the value of remaining quantity of both coins plus all the rewards you have gained, versus just holding. In defichain, the apr’s are high enough now at this early stage of the blockchain that reward accumulation outweighs IL. Even when crypto prices almost halved in value over the Nov-Dec-Jan period, it didn’t cause too much of an issue for lm.

This is the moderator who DM me about linking a wallet from a cake defi

⚠️Important: admins or moderators will NEVER send you a direct message (DM) first. Anyone who does so is an attacker/scammer. For your own safety, block and report the attacker. Do not share screenshots or usernames in this chat please.

Ok copy copy here's a screen shot impersonating you

It is not necessary to include a screenshot since scammers can make unlimited accounts. Unless the person is actually inside the group we can ban them, which they rarely are. So personal vigilance is best. Just block any DMs. As you can see if your own screenshot, the spelling of the username is wrong, plus he’s not in the group.