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RE: Impermanent Loss & Gamblers Syndrome

in LeoFinance4 years ago

There is a concept in economics that describes what I think these guys are trying to convey...opportunity cost:

Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

The thing about this concept is that it is unavoidable. In hindsight there is always a better decision that could have been taken that provides better ROI. But I don't think that they are considering that being a LP on uniswap (using a stable coin like DAI for example) has a lower risk than trying to maximize your ROI by trading directly.

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Good summary. As stated in the OP, how many traders actually keep half of their assets in a stable coin? I have literally never heard of anyone doing this or suggesting it should be done, even though it's not a bad idea to keep a balanced position. The theory doesn't mesh up with reality.