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Testing your @THORChain_org Liquidity Providing knowledge:
In which scenario is Impermanent Loss (IL) at its worst?
In which scenario is Impermanent Loss (IL) at its worst?
2) Didn’t know? Watch this video to see how the red Impermanent Loss (IL) line bends when asset values are changed.
The higher it bends up, the higher the IL. https://twitter.com/mehowbrains/status/1344082375463088128
The higher it bends up, the higher the IL. https://twitter.com/mehowbrains/status/1344082375463088128
3) What mechanism does @THORChain_org have in place to try to offset IL in the long term?
4) Didn’t know? Learn more about Liquidity Proving compensation https://docs.thorchain.org/roles/liquidity-providers#compensation
5) In the long term, should Liquidity Providers win or lose?
6) Didn’t know? Play with the http://RUNEdata.info simulator to see how LP’s have performed over time and different market regimes. https://twitter.com/thorchain_org/status/1330734439945568256
7) So what’s the benefit to Provide Liquidity in @THORChain_org pools with my dormant unproductive assets sitting in my cold wallets / centralized exchange accounts?
8) Didn’t know? First you earn yield, second you help decentralize liquidity.
* APY’s below may vary.
* APY’s below may vary.
9) Where can I learn more about being a @THORChain_org Liquidity Provider? https://medium.com/thorchain/an-in-depth-guide-to-thorchains-liquidity-pools-c4ea7829e1bf
