Degen

Update on testing out Aerodrome for ETH/DEGEN LP

With the crazy movement of Degen today, I thought I would have impermanent loss on my Degen

BUT, my LP total of ~ $800 increased to ~ $1,000… shocked it increased… need to dig into that more

AERO token is the reward for LPing. AERO is ~ $0.7 so $20 in 4 days

Hey @nbragg 

You are an LP subject matter expert

Can you explain the LP total increase to me like I am 5?

Will tip $degen for answer 🎩

Part time at Awaken. Run and own poolfish.xyz for LP providers. Built /stokefire a mobile strategy game onchain. Built Potion solo and sold for $300k.

Crypto and Blockchain enthusiasts with no friend IRL to talk crypto with so here I am

Husband | Cat Dad | Civil Engineer | /plants - host | $Degen HODLer

This is most likely the answer based on the data you've shared:

You did have impermanent loss but at the same time you have more dollars.

So it depends what you're comparing against.

If you compare the money you started with to now in dollar terms you've made more because the tokens together are worth more...

...impermanent loss.

LPIng is a different kind of strategy. I like it because it gives you a lot of options and allows you to do it in a way where you are more or less bullish on the tokens.

So TLDR. you are up in just dollar terms but you would have been up even more if you just HODLed ETH and $DEGEN.
and you would have been even more up if you were all in $DEGEN.

Does that mean you made the wrong move? Not really.

Wait it out. hopefully you'll make more fees to overcome the HODL positon and overtake..

... $DEGEN went up so tokens together are worth more.

But if you compare against HODL. (holding the same amount of $DEGEN and ETH you had in the beginning) you are most likely down.

You would have had more $DEGEN in your position with HODL.

Thanks! Hope I can continue to be helpful.

Damn Noah 

You are a wizard. I wasn’t thinking about comparing to a hold position. I was just thinking in terms of one data point to the other and assuming I should have lost some value.

Anyways, thanks again. Always look forward to your content 

6000 $DEGEN