Bitcoins/Litecoins/Virtual Currencies

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James

James

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TXjohnny said:
What price range are you using on v3? How often are you having to adjust it with the price movements over the last week?
Click to expand...

Just created one two nights ago from 4535 TRU/ETH to 10092 TRU/ETH at 1% fee, but closed it out after almost a day because it went just above that 10092 TRU/ETH. This one I created last night, hopefully I don't have to fuck with it at all:
 

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Tmac

Tmac

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So, when you setup your pool, based on your deposit amounts, that's how much you'll need to pool of each crypto respectively? Per below, a deposit of .5 ETH requires a deposit of 13636 TRU?

Screen Shot 2021-06-22 at 4.58.05 PM.png
 
James

James

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Tmac said:
WTB how to.

[edit] I read the V3 docs, so adding a pool is simple enough. But, understanding price ranges, how to manage them, and what to expect would be helpful.
Click to expand...

Yeah, I'm still figuring it out personally. For the one I closed out yesterday, I initially put in 20k TRU and .6 ETH, and when it went above my limit I pulled out 27980 TRU and 0 ETH.

EDIT: The ratio of TRU/ETH depends on where on the curve the current price is, i.e. if the range is 5000-10000 and current price is 9000, the TRU/ETH ratio will be like 90%/10%.
 
Tmac

Tmac

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James said:
Yeah, I'm still figuring it out personally. For the one I closed out yesterday, I initially put in 20k TRU and .6 ETH, and when it went above my limit I pulled out 27980 TRU and 0 ETH.

EDIT: The ratio of TRU/ETH depends on where on the curve the current price is, i.e. if the range is 5000-10000 and current price is 9000, the TRU/ETH ratio will be like 90%/10%.
Click to expand...

So, then how do the fees work? I get the idea that you're providing liquidity and earning interest on that liquidity. The thing I don't get is the rate of return and how setting up a high and low generates that return.

I've also looked into pooling and seen where you can both gain and lose money based on the market and that there's some sort of simple equation at play that will dilute your pool and you'll lose your original pool value, but over time due to fees you'll make money. Still seems complex.
 
James

James

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You're not really earning interest, you collect a portion of the fees for every time someone swaps between the two tokens you're providing. So if no one swaps those two tokens, you don't get shit.

The equation is x*y=k, where x and y are your two tokens, and k is your LP position, which is what V2 is built around where your get XX.X LP tokens depending on x and y provided, and redeem XX.X 'x' and YY.Y 'y' tokens when redeeming it, and yeah, the difference in ratio is what's called "impermanent loss" because theoretically if you withdraw at the same ratio you provided at, you won't lose anything.

EDIT: Uniswap Info

This is the pool where I'm providing, so any time you see a "SWAP" at the bottom I get some unclaimed fees in my LP NFT. Some good information here, you can see how much fees the pool is generating per day, the TVL, volume, and liquidity so you can get a feeling of how much you'll be collecting.
 
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Tmac

Tmac

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James said:
You're not really earning interest, you collect a portion of the fees for every time someone swaps between the two tokens you're providing. So if no one swaps those two tokens, you don't get shit.

The equation is x*y=k, where x and y are your two tokens, and k is your LP position, which is what V2 is built around where your get XX.X LP tokens depending on x and y provided, and redeem XX.X 'x' and YY.Y 'y' tokens when redeeming it, and yeah, the difference in ratio is what's called "impermanent loss" because theoretically if you withdraw at the same ratio you provided at, you won't lose anything.

EDIT: Uniswap Info

This is the pool where I'm providing, so any time you see a "SWAP" at the bottom I get some unclaimed fees in my LP NFT. Some good information here, you can see how much fees the pool is generating per day, the TVL, volume, and liquidity so you can get a feeling of how much you'll be collecting.
Click to expand...

Would you want to add liquidity in a higher volume to get more monies; like ETH/sUSD or something? Or is the idea to bet on your horses (ETH/TRU) and provide liquidity to increase your horse bet?
 
James

James

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That's what I've been testing out, and I think the answer is it really depends. It's good for both. The higher volume tokens tend to have higher liquidity, so you don't collect as much per swap but there's so many more swaps happening that it makes up for it -- so I had a SHIB/ETH pool running alongside a TRU/ETH pool with a little more liquidity, and it was generating worse fees than the TRU/ETH pool.

I tend to stick to ETH pools because I want to generate ETH much more than the other token, though pools where you believe in both tokens (e.g. WBTC/ETH or TRU/ETH) is obviously a great win/win if you can manage your impermanent loss. Providing liquidity is much more about making money than it is supporting the token, and in fact the smaller the pool the higher your risk is for losing everything (see Mark Cuban's comments about thinking the TVL was high enough to not get rugged on the TITAN pools).
 
Flobee

Flobee

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More on Bitcoin Lightning network + layer 3 applications. Bullish as fuck. If you're paying attention to whats happening in Bitcoin you see a massive buying opportunity here. Daytraders get wrecked while Bitcoiners stack

 
James

James

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Great article outlining where Truebit is at currently, and where it will eventually end up. There's going to be an AMA on the subreddit on Thursday at noon EDT.
 
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Sanrith Descartes

Sanrith Descartes

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So we have established a line of support at $28,800 for BTC. That is the next entry point for me.
ps.. Gemini Active Trader is a really slick interface.

1624406730026.png
 
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Deathwing

Deathwing

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Reading this thread, seeing all these terms I don't understand, it finally clicked why James James hasn't posted in the PoE thread in quite a while.
 
Sanrith Descartes

Sanrith Descartes

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Gee I wonder if this had anything to do with the crypto crash the last 24 hours...





 
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Arden

Arden

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Flobee said:
Assuming you buy it now. Hard telling if you can spend fedbucks on an exchange for freedom money. GL with that
Click to expand...

Oh, I'd be really surprised if they tried to put any kind of limitations on febucks that weren't already on the dollar. I'm sure you could buy anything with a fedbuck you could buy with a dollar- which means you could buy crypto with fedbucks.

I do think you raise a really interesting point about how a digital currency would make it easier to prevent people from buying "banned" goods/services etc. A digital-only currency system would ostensibly make buying shit like drugs and other illegal stuff a little more difficult. You'd be adding an extra step or two that doesn't exist now anyway. But in order to prevent people from buying crypto with fedbucks they would have to actually ban crypto first, which requires an act of congress...

No, I see this as another huge step in mainstream adoption of blockchain tech and crypto. I'm personally more excited for this news than I was about El Salvador.
 
Flobee

Flobee

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Yea, I think the biggest concern is privacy. There will be absolute transparency on what you're spending your money on.
 
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