hi @printskill
I've small question related to liquidity pools and impermanent loss.
I'm trying to wrap my head around it and based on my understanding:
- currently price of RBS is 0.2$
- I would add my funds to liquidity pool (pair RBS-BUSD) in relation: 1000 usd / 1000 usd
in that case I would need 5000 RBS tokens and 1000 usd worth od BUSD. Is that correct?
Now, what would happen if price of RBS would:
a) scenario one: RBS would drop down to 0.1$ (50% drop)
b) scenario two: RBS would go up to 0.4% (100% increase)
I presume that the moment I exit liquidity pool, then I would end up still with 1000usd worth of BUSD, but amount of RBS tokens would be different.
Now, my question is: how many RBS tokens would I have at the end of the day (depending on the scenario).
Enjoy your weekend buddy,
Yours, Piotr
Thank you @crypto.piotr for your engaging comment. Practically I have not faced any situations before like this.
Let me first go through the practical experience with @robinia and then let me see what happens in this scenario.
So, at the moment I apologize for not being able to give an answer to your question. But definitely, I will go deep into your point.
I also welcome your feedback and best answer if you have it because I am earning so many new things from your experience.
Regards.
@printskill
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thanks for being so responsive @printskill
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