RE: Liquidity Pools Explained

You are viewing a single comment's thread from:

Liquidity Pools Explained

in hive-185836 •  3 years ago 

Hi Piotr,

in that case I would need 5000 RBS tokens and 1000 USD worth of BUSD. Is that correct?

That is correct.

a) scenario one: RBS would drop down to 0.1$ (50% drop)

You would have 1500 USD in total if you had the two cryptos separately. But you will have 707 dollars worth of BUSD(707 BUSD) and 707 dollars worth of RBS(7070 RBS) in the liquidity pool. (%5,72 extra loss because of impermanent loss)

b) scenario two: RBS would go up to 0.4% (100% increase)

You would have 3000 USD if you had the two cryptos in separate. But you will have 2828 USD worth of tokens in the liquidity pool. (3535,5 RBS and 1414,4 BUSD)

Best Regards,

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

thanks for that feedback @muratkbesiroglu