can you order Pregabalin online Time for another update. We have LOTS to talk about this week as there have been big moves in our underlying 3 cryptocurrencies
http://tucsonazhomejp.com/packages/ In fact, there is now a risk of impermanent loss, which is something we will discuss later.
http://commervanspares.co.uk/shop/uncategorised/fuel-pump-repair-kit-glass-bowl/ This week is week 7 so only 1 short of 2 months. You know from DeFi update 3 that I did NOT reach my goal in the first month but I decided to keep the investment for another month. After all, $94 instead of $100 was pretty close. I would be back on track if by next week, I have earned $200 on my $500 investment.
My return, since both pools pay in CAKE is, is 7.70 CAKE, which is worth $185.72 today at a price of $24.10. My USD return is 185.25/500 or 37% total return or 5.3% weekly return.
When we started, we had 2 liquidity pools where we invested: SWINGBY-BNB pool and the CAKE-BNB pool. So we have 3 tokens whose prices we are watching.
My starting prices were:
- SWINGBY 72c
- CAKE 13.56
- BNB 257.94
And now the prices are
- SWINGBY 57c
- CAKE 24.10
- BNB 551.24
You may notice that both CAKE and BNB have absolutely exploded in price, which looks like we are now in a confirmed ALT season (time to invest in the growth of other non-BTC tokens). CAKE is up almost 100% and BNB is over 100% during this experiment.
The gains are so big there is now a risk of impermanent loss. So let's get into what that is
What is Impermanent Loss?
Binance has a good explanation of what impermanent loss is. The basis of this loss is that when we provide liquidity to a pool as I've done in these 2 pools, it's equal USD amounts of CAKE and BNB for that pool and SWINGBY and BNB for that pool. I own a fixed % of these pools.
This is the important part. I have to take a fixed % of the pool out when I want to exit my liquidity pool. Impermanent loss is the difference between putting my assets in the pool versus just holding the base asset, in this case, BNB. If I just bought and HODL BNB my return would be 113%. In ONLY 7 WEEKS. It's crazy. That's what my 1.93 BNB would be worth, or $1,063.89.
I would not be exposed to CAKE if I had not put my money into this pool so my $185 in CAKE offsets some of this loss, which is really an opportunity cost.
Right now, my impermanent loss, and this is an inexact calculation, is a $563 gain I would have in BNB minus the gain I DO have in CAKE Of $185 or $378. I will be talking more about this next week as I think my SWINGBY pool could be more negatively affected than my CAKE pool.
There's a good chance if prices stay where they are that next week when I finish 2 months investing on PancakeSwap that I will have reached by $100 per month goal. Let's see how it goes next week.