How recent #HIVE Surge effected my dollar value in Liquidity Pool on Hive-engine...

Hey All,

The recent spike in #hive left me amazed to see my liquidity position rise drastically in terms of dollar value. I would say I saw at least a $1K+ spike in value. Yes I know the reason as well and that is tied to Impermanent loss. I guess we all know what Impermanent loss in Yield Farming? In case not then let me remind you that it a temporary reduction in the value of assets in a liquidity pool that occurs when the price of the assets changes. In our case as #HIVE price changed we will definitely see a change in value for all the LPs where you have funds paired with #HIVE. Also an Impermanent loss can happen when a liquidity provider (LP) deposits funds into a pool and the value of the assets in the pool changes due to trading activity. Here is the snapshot that I had saved for my liquidity position before the rise in value of #hive

You can clearly see a difference of almost $1K+ in value. So what did I do when the spike was observed well to be honest I liquidated some #HIVE and then swaped it with the pair it was providing liquidity. By doing this I was able to get more tokens and ultimately when the price of #hive dropped back I increased my liquidity with the same amount of #hive that I had liquidated. In all by doing so I was able to gain some dollars which I feel is overall good - profits are always welcomed and why not. And well these kind of situations doesn't occur daily one just need to take a call at the right moment and act accordingly when situations like these occurs. Most of the time I don't touch my funds in the liquidity pool they are either growing when I add liquidity further or are stagnant when I am swapping the rewards with some other tokens. Overall I can say that so far my experience of providing liquidity here on the hive-egnine has been great and I plan to further invest in emerging second layer tokens here on the HIVE Blockchain. Well this should be it for todays post on How recent #HIVE Surge effected my dollar value in Liquidity Pool on Hive-engine... Happy Investing... cheers

Have Your Say on Liquidity, Convert SWAP.HIVE to HIVE - BeeSwap Portal...

Did you observe the spike in dollar value for your liquidity on hive-engine? Did you leverage the convert swap.hive and vice-versa service provided on Beeswap? Which service you do use while converting #HIVE & SWAP.HIVE? Would love to hear your thoughts around it in the comment box below? Cheers

How recent #HIVE Surge effected my dollar value in Liquidity Pool on Hive-engine...

#swap #hive #beeswap #swapservice #reliable #swaphive

Best Regards

Image Courtesy:: beeswap, peakd

PS:- None of the above is a FINANCIAL Advice. Please DYOR; Do your own research. I've have an interest in BlockChain & Cryptos and have been investing in many emerging projects..