You are viewing a single comment's thread from:

RE: My Experience From Providing Liquidity For 50 Days On Uniswap In The ETH-UNI Pool | What can be learned?

in LeoFinance3 years ago

Thats a great detailed research on the effectiveness of your investment/pooling. Hmmmm, I take your note: best is to porivde liquidity when both Ethereum and the other token will gain in value. I suppose, its not so good to go into some liquidity pool of a new token since thet usually decrease in value in the beginning. Also, I guess its better to go for ling term liquidity in those tokens that are expected to do well over a longer period of time. This essentially reduces the target tokens to the bluechips, the top tokens in crypto universe. Step in when they are low, ie not now since we are in a bull market and likely we'll see some pull backs after the bulls used all their energy and needs a season or more to regain strength again.

Interesting to see what is happening now with LEO. Some larger purchases at Uniswap at the moment driving the price up. Wondering what will happen. Will it continue to rise without major pullbacks? Then it would be interesting to provide liquidity to the wLEO pool. But it may go the same as with many entries, after the initial hype, pullbacks happen. In the end investing in any form, stays kinda gambling like, at least for the short term.

Posted Using LeoFinance Beta

Sort:  

Wondering what will happen. Will it continue to rise without major pullbacks?

Wish I knew that to :)

Markets gp up and down, cant go just in one direction.
One thing that is for sure with wLEO is that it provides a large liquidity and you can buy and sell bigger amounts without changing the price much.
This gives a stability in the price.

Posted Using LeoFinance Beta

This gives a stability in the price.

That is at least something; With about 250k$ in the pool already, its for wLEO/LEO already a major achievement. I believe, the LEO team provided the first 50k$, which means others provide the 80%, all within a single day. Thats super!

BUT, this will not say anything how strong or weak LEO will be in the near to longer future. Though I'm optimistic for the short term and semi-optimistic for the longer term. Why semi-optimistic: Well, after being with Steem/HIVE for 4 years, I still have my doubts regarding sustainability of crypto rewarded blogging as we have it implemented. Maybe the Patreon model is the future model, ie tipping like instead of rewards from inflation.

From what we have seen, blogging can be a nice mechanism for token distribution. There needs to me more things on top of it.
Hive is more than blogging now, leo as well.
Still cant tell what the future hold :)

Posted Using LeoFinance Beta

There needs to me more things on top of it.

100% agree... blogging alone is not suffcient for the underlying chain to become a success.