Why price doesn't matter? when you take decision to swap

Question

Why price doesn't matter? when you take decision to swap

your waves by recap tokens, price always matter. You have to compare two situations: your profit by swapping your waves, against your profit by conserving them.

#cryptocurrency #english #neutrino

0

10.06.2022

10 ответов

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Martin WL Автор вопроса

Polkaris
That's impermanent loss. When you issue recap at B...

and if you think waves price will not increase, then neutrino collateral looses to pay you. So, situation is: you bet against neutrino. Either you profit and neutrino loose, or you have to loose to help neutrino. Which is the purpose of that?

0

10.06.2022

Polkaris

Martin WL
and if you think waves price will not increase, th...

I don't get why you say betting against neutrino. But anyway I'm done for today 😂

0

10.06.2022

Martin WL Автор вопроса

Polkaris
I don't get why you say betting against neutrino. ...

I just explained. Read the entire comment: Either you profit and neutrino loose, or you have to loose to help neutrino. Which is the purpose of that?

0

10.06.2022

Polkaris

Martin WL
I just explained. Read the entire comment: Either ...

Neutrino doesn't lose

0

10.06.2022

Martin WL Автор вопроса

Polkaris
Neutrino doesn't lose

if you got more than what you would have obtained by conserving the waves, then yes, neutrino looses. Because he has to pay more than what you put.

0

10.06.2022

Polkaris

Martin WL
if you got more than what you would have obtained ...

No. I told you. Recapitalization can be because of waves price increases. But also because waves amount locked increases

0

10.06.2022

Martin WL Автор вопроса

Polkaris
No. I told you. Recapitalization can be because of...

if issuer got profits from neutrino collateral, then neutrino collateral is loosing.

0

10.06.2022

Polkaris

Yes, but when there is not collateral for backing usdn you bet for it and you help the system. You risk your money

0

10.06.2022

Martin WL Автор вопроса

Polkaris
Yes, but when there is not collateral for backing ...

in the short term, you help the system. In the long term, either you syphon the system or you loose.

0

10.06.2022

Polkaris · Accepted Answer

Polkaris

That's impermanent loss. When you issue recap at BR 0.75 you know you are getting a 33.33% profit. If you think waves will increase price then don't issue recap

0

10.06.2022

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