Vonderwald please desist from using such words while I check

Question

Vonderwald please desist from using such words while I check

this out.

Also note: as a normal behaviour of how providing liquidity in AMM works, Whenever there are large trades happening into a pool (which is the case now, If you look at the txs on the pool, there were a few swaps on it in the hours after he staked
https://polygonscan.com/token/0x0Ae7577fc8B0578a8860528E32140827973B5641) the liquidity of the provider serves to facilite those trades. In other words, whenever there is a price change to the datatoken (caused by fluctuations in supply/demand -> trades) the liquidity changes. What are the benefits of staking/LPing then? Well, for each trade you get a cut of the transaction fee paid by the data buyer + data farming rewards. Eventually, rewards gained should be equal or more to the impermanent loss caused by the trades into the pool. Here is a very insightful article by Uniswap that may help understand the exact dynamics of Impermant Loss: https://medium.com/@pintail/uniswap-a-good-deal-for-liquidity-providers-104c0b6816f2

#cryptocurrency #english #ocean

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06.07.2022