Jongo's DeFi Journey. Is It Really....A Loss?
I'm fascinated by crypto!
I think that goes without saying, every one that's on this blockchain believes, we are at the beginning of something that is going to change our lives...
Part of my crypto journey has been to avoid MetaMask and Ethereum based projects at all costs lol And of course, that has meant that I've ignored or failed to capitalize on certain DeFi projects along the way.
Story time.....
I remember when @LeoFinance released Cub Finance. This literally MADE me dive in and actually attempt to learn about DeFi. I understood the basics but still, hated using anything other than Hive. I'm a big user experience kind of guy, so if I feel I need a PHd in computer science to navigate around a platform, I generally close up shop and leave.
But CubFinance made me dig in! And I'm glad I did :)
Which brings me to my first 'lesson' in DeFi - Impermanent Loss.
Ooooh....Scary!!!
This was the big bad risk when it came to DeFi. But let's see what this term even means...
According to LeoGlossary:
DeFi pools require us to put the equal amount of two tokens to provide liquidity. And I get the definition because, sadly in the history of DeFi there's been a lot of rug pulls and scams. Sure, it'll pay you 100000% APR, but you have to shell out a bunch of high value assets like Ethereum or Bitcoin, and match it with the 'opportunity' coin lol
Well, you can guess what happens when the owners and creators of these pools have a whole bunch of BTC or ETH.....The pulling of rugs occurs LOL
However here's what I've learned over the years....There is never impermanent loss when you are bullish on both tokens!
Which brings me to my latest obsession in crypto....TribalDex liquidity pools!
Why is this all I'm thinking about these days?
Reason #1 - It's on Hive!
Which means, no MetaMask, no Ethereum and no fees! Hallelujah!
Reason #2 - There Is No Loss For Me
Why? Because I'm currently in 2 TribalDex pools...
Follow me here....
I'm bullish on a few things in crypto, Hive being one and #splinterlands being another.
Would I cry myself to sleep if....I received more Hive than SPS if I removed liquidity from a pool? Or would I pound dirt if I got more VOUCHER rather than Hive down the road if things go crazy?
Nope. Whichever way you flip it, if I lose or gain either of the tokens in the pools I'm in...I can't call it a loss!
This is what DeFi means to me...I'm stacking some fantastic APR by providing liquidity in 2 pools that contains 3 tokens I'm obsessed with. So if it all goes to hell, and I earn more or less of one when I remove myself from the pools...Doesn't hurt me at all.
Such a win!
And oh yeah, by the way....Did I forget to mention....It's on Hive which means...No fees :)
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