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File: 904 KB, 2198x1428, Screen Shot 2020-10-15 at 3.50.27 pm.png [View same] [iqdb] [saucenao] [google]
23281367 No.23281367 [Reply] [Original]

Impermanent Loss is catastrophic to profitability.

>> No.23281403

You are shorting volatility when you supply to these pools. Makes sense it would destroy profits

>> No.23281418
File: 1.52 MB, 2180x1400, Screen Shot 2020-10-15 at 3.50.42 pm.png [View same] [iqdb] [saucenao] [google]
23281418

>>23281403
But the returns are atrocious. It literally eats up any gains you might make

>> No.23281423

>>23281367
Yeah. Real market makers have to account for this by hedging and trading strategically. So will any AMM bot that is profitable.

>> No.23281433

>>23281418
It works really good when the token crabs though.

>> No.23281453
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23281453

>>23281423
But an AMM platform that "solves" impermanent loss would be insanely valuable I guess. So you can always withdraw your initial stake + fees.

>> No.23281458

Kek, I never got into liquidity pooling but was curious on it, when I actually decided to research how it works with uniswap and found out it balances your alt to eth through fees and removes accordingly based on increasing and decreasing price I immediately knew to stay the fuck away. I feel bad for those who provide liquidity currently unaware of what it's doing to their gains. But their ignorance is probably what supplies so much stability in these tiny coins

>> No.23281473

>>23281458
To add, the only coins I would consider staking would be xrp, pnk and algo, and even then it wouldn't be till a couple of years after adoption

>> No.23281477

>>23281453
>time to shill bancor
too bad they're still way behind uniswap in terms of volume

>> No.23281521

>>23281477
There's no reason they'd have Uniswap's volume at this point. Uniswap is a better, cheaper AMM as of right now from a user perspective.
But after v2.1 is approved and you have no IL then there is a huge incentive for LPs to stake on Bancor rather than elsewhere. And once the LPs pile on then you have the pool liquidity to attract people who want high value, low slippage trades. If Bancor can solve its Gas cost issues it will be the go-to for all retail, but even if it doesn't it will be the go-to for anyone making large trades as the difference in slippage is immense.

>> No.23281524

>>23281473
>xrp
>pnk
>algo

Dear god when the best coin in your portfolio is ALGORAND of all things I want to puke and throw my computer screen against the wall.

>> No.23281537

>>23281524
>thinks pnk is a meme
You’re a fucking dumbass lol

>> No.23281548

>>23281453
i knew you were shilling bancor but that just distributes the il across bnt holders/stakers and prays that volume and fees will follow lps who want the gimmick to be true. someone always has to lose out on the change of relative values of two paired assets

>> No.23281569
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23281569

>>23281524
I stated those because I expect them to be stable, stupid, they are large liquidity coins that can expect a serious amount of volume in daily transfers - while also having a fairly reserved growth rate once adopted by normies. Until that point I consider it foolish to pool any token for a prolonged period of time as you could risk insane gains.
Let me guess
>muh tokenomics
?

>> No.23281580

>>23281367
What video is that from?

>> No.23281605

>>23281548
Which is why it's necessary to have a number of attractive features rather than just relying on elastic supply IL mitigation to be the only selling point, and I think single asset exposure and liquidity amplification (with already demonstrated huge reductions in slippage) is a tasty enough incentive to get it up and running.
I can't see the future, maybe it won't work, I'm not that much of a hardcore shill. But their approach is slow and methodical and if they pull it off it will be revolutionary.

>> No.23281624

>>23281580
>http://youtube.com/watch?v=kLmuZcC2ASY

>> No.23281704

Yes it's all true. However Bancor will fail to solve this.

>> No.23281838

Ampl already solved il which is why its going to make me very rich. Its literaly a license to print money with no downside.

https://www.ampltalk.org/app/forum/technology-development-17/topic/amplusdc-smart-pool-on-balancer-141/

>> No.23281874

>>23281704
Cronje will.

>> No.23282155

>>23281704
Why will Bancor fail? This video above is straight forward about their solutions. Is Bancor not usable for US customers?

>> No.23282241
File: 120 KB, 1400x964, UNNzargham.png [View same] [iqdb] [saucenao] [google]
23282241

>>23281367
UNN literally solves this tho.

>> No.23282763

>>23282155
burgers are banned

>> No.23282786

>>23282763

REEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

VPN? I'm able to get on the site no problem will it IP ban me once I actually try to do anything? There are no other good options for passive gains right now. This seems legit for LINK

>> No.23283196

>>23282786
Only the Bancor front end is Burgerbanned. There are other 3rd party ways to use the protocol but I don't know much about them. I think xnation is one that has been mentioned but DYOR.

>> No.23283245

>>23283196

Thanks I'll check it out. Basically all I need to do is get my LINK in their single asset IL protected liquidity pools when they open and be able to still get it out. I won't need to use the protocol other than parking my money in it. Hopefully I can still do that.

>> No.23283268

>>23283245
best of luck anon, let us know what you find. i'm sure there will be plenty of burgers who want in.