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53214047 No.53214047 [Reply] [Original]

I'm staking in a high APR pool. it's been solid for about 6-8mo. I want to cash out before rug. Interestingly, one of the pools i'm in the coin did a 2x today.

For simple math lets say I had
>1k USDT
>1k TOKEN
in the pool (assuming 1 TOKEN = 1 USDT). Now that 1 TOKEN = 2 USDT, do I have 2k USDT or do I have 500 TOKEN? The pool doesn't pay out in TOKEN unfortunately, so I dont have any liquid to profit from the 2x.

I'm wondering if by withdrawing im taking a haircut

>> No.53214089
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53214089

>>53214047
to be clear, the pool just tells me my LP not my actual position with either USDT or TOKEN. However, my total valuation did seem to double. I'm trying to make sure that by leaving it in the pool, when it does a 10x, i can still profit appropriately AND get the pool rewards in the mean time

>> No.53214155

>>53214047
impermanent loss is the answer to your question.

>> No.53214173

Don't you just subtract it?

>> No.53214198

>>53214155
thats what I thought but then wouldn't my total pool valuation stayed the same? I went from 1k to 2k so presumably if I withdraw now, I should get a 50/50 split right? Is it possible some pools have IL cut out?

>> No.53214209

>>53214089
the pool is always 1:1 dollar value
eg, in the usdc/usdt pool, its just 1:1
if its usdt/token2 and token2 is $2, that means the usdc side of the pool has to balance.
if token2 does a 10x to $20, the usdc side of the pair has to have 20 coins for each...1:1 balance.
always
up or down, IL fugs you. What you want is the price to stay the same and get fees, thats it. If you think token2 will moon, you should just hold token2

>> No.53214220

>>53214209
(((I))) am also retarded, so...

>> No.53214351

>>53214198
>Is it possible some pools have IL cut out?
no, this is how the protocol makes MAD money, arbitraging the price to maintain 1:1

>> No.53216554
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53216554

>>53214047
youre not taking a haircut, but you will get back less of a nominal amount of the token in question before any fees or farm rewards, since the price went up, just be happy it didnt go down 50% or you would be withdrawing 500 usdt and 500 dollars worth of the token (2 times as many units of the token as originally though)