Reddit Posts
Mentions
Found this because I was confusedly looking for the difference between pooling and staking. I always thought pooling WAS staking, or at least was a form of staking. But personally I've always used liquidity pools. Mostly just because I've lucked out and found ones with insanely high APY. Best example right now is Axies. You can either stake RON for 13-16% APY, or you can pool RON with various other tokens for 50-70% APY. The choice seems obvious to me, especially since the APY has remained consistent for about 2 years now (lowest I saw it go was like 49% I think). Right now I have RON/ETH(73% APY) and RON/AXS(64% APY). started 2 years ago or so (whenever they started the pools) with around 5-8k in there, and slowly been building that (split my rewards about 50/50 every time I cash out, and put half back into LP) and it's worth like 28k now. Impermanent loss is something that has always confused me too. Maybe I have just always gotten lucky with projects, but I've only ever seen permanent gains, with how much these pools usually pay out it's almost impossible to have impermanent loss, because your rewards will cover any amount of loss if it ever does happen (unless you are just choosing shitty project pools idk). Like I understand how it can go wrong, I've just never experienced it myself so it's hard for me to comprehend how you would allow it to happen. But then again I probably wouldn't pool or stake anything these days for less than 20% APY (which is why I haven't staked RON, there's almost no point when I can pool for quintuple the money). I don't feel like pooling needs high monitoring or has high risk. Every time I "monitor" it, it's because I am excited to see how much money it is making me today, or how much RON has pumped, or how much ETH has pumped etc. I also feel like this post ignored the fact that pools kinda give you a double safety. Pretty much both coins have to fail for you to lose all your money. With staking, only one coin has to fail to lose all your money. Like if Ron is down but ETH is up, things stay mostly the same in my pool, and it eventually corrects itself anyway (in this case at least since axies has been trending upward). Lastly, pools can give you some almost sketchily impossible gains. ***I can not stress enough how much I DO NOT recommend what I am about to mention, and it is the furthest thing from a suggestion, as it is an already failed project:*** AlpacaCity. Alpaca city was a project that started in 2020, and was failed about halfway through 2021. A lot of people were making a lot of money breeding alpacas and selling them, but this was limited to people who had "cracked the code" for breeding. The other two ways were squad farming (you "stake" up to 30 alpacas, and they farm ALPA for you based on their average energy levels) and LP farming (you "stake" ONE alpaca and some LP tokens, and it farms ALPA based on how much LP you have, factored with the energy level of your alpaca) about 99% of people went with squad farming because most people had dozens of low tier pacas, and most people didn't have anything very high energy, but also everyone is scared of the mysterious "impermanent losses". I decided to take the risk and try out LP farming (back in 2020 when it was still poppin) and quickly discovered that since almost no one else was doing it, the rewards were INSANELY high, not only compared to squad farming, but compared to anything else in crypto, even to this day. I only ever put in 1000$ into LP farm, but I was pulling about 200$ a week from it. This honestly never slowed down even after the project died, because the pools were all abandoned with money still in them. To make things crazier, during the dying period when 90% of the community was already gone, they changed the LP contract, which meant anyone with alpacas or LP in the old pool, would no longer get rewards, and had to move to the new pool. I was quite literally THE ONLY PERSON in the new pool for MONTHS. (it shows you lowest/highest energy alpaca in the pool. I had the highest energy, and the lowest energy was blank, meaning there was no other alpaca in the pool). Despite this, it seemed like it was still pulling rewards from the original pool, because my rates never changed. Which by the way, have been at 5,000%-20,000% APY for over 2 years now. If it wasn't for how dead and sketchy this project is, I would have put much more money into it, but never wanted to risk more than my initial investment of about 1000-2000$ (I spent money on a 9000 energy alpaca to make rewards better at some point). I would have to add it all up again, but I've made somewhere around 15-20k USD off alpaca farming since it started, and still to this day I am making about 200$ a month from alpaca farming, despite the project being 100% dead at this point. As long as this pool still has money in it, I am gonna drain it though. The best cow in crypto, but it's definitely emaciated at this point. To clarify: if I would have just held 2000$ as ETH for 3-4 years, I would have made no where near the amount of money I made farming alpaca. Which is why impermanent loss confuses me. Again, I have probably just gotten stuuuupid lucky when it comes to LP, but I think impermanent loss is just a skill issue honestly.
Trending coins on CoinMarketCap today: OMNI (OMNI) CryptoKeK (KEK) Alpaca City (ALPA) Render Token (RNDR) CashHand (CHND) Superbid (SUPERBID) Do you hold any of these?