wHive liquidity pools incentive [PROVISORY PROJECT]

jocieprosza in LeoFinance • 6 years ago

Another post of temporal measure - I was mentoning in this post - to create some incentives for hive users providing liquidity for WrappedHive pools. The beneficiaries are those supporting the liquidity of wHive pools.

I know this can be automated, but decided to go with it anyway because the liquidity is decreasing. This post may not bring enough to be noticed by a larger community, but it will show a way how to provide benefit at early stage and long before DAO proposals is created, not to mention passed through.
How did it go?
I actually got very optimistic at the beginning. The turnout was decent, I assumed that having that every two or three days would cover gas fees and loses - the reward of 2,42$ in half gave me 0,06$ author's reward but cardboard is to get 0,955$. It aint that bad. And it would be significant factor if regular.

What is more, I don't know why uniswap shows different values Total liquidity of 2,342$ but summing up the value of particular pools show the outcome of 5,169$

post date	Hive rewards
3/09/2020	1,21 HBD and 6,8 HP

Sorry for the paintjob, but didn't have any time.

What did change?
The number of identified liquidity has fallen dramatically as @jk6276 and @cardboard have taken out their supply. I gues the whole project is already being dead, so I gues everyone should remove their liquidity not to loose funds completely.
It's safe to bet wLeo would be more successful in this matter as its launch is better prepared and there are more options to opt-in by lesser fish.

How to find yourself on the list?

provide liquidity for any of whive pools on uniswap
send me your address in the comment or via encrypted memo if you want it to be shared publicly.

Here are the current numbers

https://uniswap.info/token/0x11d147e8d39f59af00e159c4b1fe3a31d58a2c66

The rewards for this post go to:
@khaleelkazi 68%
@jocieprosza 5%

Always check if the rewards are set as stated in the post

How to sent encrypted memo?

Send me a fraction of hive with memo starting with '#' character. It works on hive, it did not on peakd though.

I am hungry for any feedback here

Posted Using LeoFinance

#leofinance #hive #palnet #whive #neoxian #ctp #bilpcoin #defi

6 years ago in LeoFinance by jocieprosza

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cardboard 6 years ago

Just to clear things out - I will be adding liquidity later on, just need HIVE at the moment ;)

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jocieprosza 6 years ago

To be clear, these are your funds and you can do whatever you please with them. I am in no position to impose or put pressure on you about anything 😉

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rodent 6 years ago

"so I guess everyone should remove their liquidity not to loose funds completely."

You wouldn't lose your funds? It's just that won't be collecting much in fees until the liquidity is high enough for people to start trading.

Realistically, I'm surprised people bothered to withdraw. With gas out of control right now I'm sidelined on my plan to contribute to the LP, and I'm guessing I'm not the only one (sheer unfortunate timing of project start), so why in the world is anyone willing to pay all those fees just to exit the pool?

Posted Using LeoFinance

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jocieprosza 6 years ago

You wouldn't lose your funds?
I guess so, but keeping funds at low liquidity pools can also lead to that - as far as I understand.

ith gas out of control right now I'm sidelined on my plan to contribute to the LP, and I'm guessing I'm not the only one (sheer unfortunate timing of project start)

I think the same.

so why in the world is anyone willing to pay all those fees just to exit the pool?
they need funds elsewhere or found a way to earn despite the gas fee.

I'm currently keeping my funds, but I don't know for how long. Will continue with this project few days more and will see what happens after launching wLeo pools

Posted Using LeoFinance

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rodent 6 years ago

I guess so, but keeping funds at low liquidity pools can also lead to that - as far as I understand.

I'm not sure how? I could be missing something, and just did a quick search and came up with nothing. Low liquidity is technically good for a pooler, but bad for a swapper. Which is where we are, trading in wHive is too illiquid for anyone to use it right now.

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jocieprosza 6 years ago

I thought that with low liquidity a swap trade may use out all of the tokens provided in the pool, so you can end up with only one token.
But the more I think about it, I'm not so sure. It's because uniswap brings up the swap rate so that you may end up with tokens bought at lower rate than initial one.

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rodent 6 years ago

Well, first off uniswap won't let you do it in one go. Here's what happens when I try to buy $680 of wHive (ignore the fact I had to use my LINK, the route shows you it would be in ETH):

Screenshot from 2020-09-06 08-36-59.png

So it won't let me buy $680 because it would throw the pool off too much. But realistically its doing that for my benefit, not the LPs. Look at that price impact. Yes, the pool would have too much ETH and not enough Hive, but I'd be putting in waayy more ETH value than Hive value I'd be able to take out. This would cause the "value" of Hive to gap upwards, creating an arbitrage opportunity where anyone can buy Hive elsewhere and sell at a pretty free 20% profit.

Of course low liquidity and high gas fees means noone can do this if the pool ends up, say 3% or something else small off, so that is a "risk". But if the pool had basically only one token.... let me know the pool so I can sell in the other for easy coins.

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1 vote