Providing into a Liquidity Pool (RUNE:BNB) is a marathon not a sprint

in LeoFinance4 months ago
My journey into DeFi and taking part of Liquidity Pool started when Ethereum alternatives started to appear as I've always been reticent to getting into Uniswap or others alike due to the high has fees. Just paying with my precious Ethereum for the gas fees didn't feel right for me so I've always looked for better alternative, which started to appear lately. And when BEPSwap appeared and I got informed enough about it - a decentralized platform that enables Binance Chain token holders to convert one BEP2 token for another and stake their assets to earn trading fees for providing liquidity to the market. Like Uniswap on Ethereum, BEPSwap allows for the seamless and secure conversion of digital assets, but with cheaper fees - I felt it is the right choice for me.

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The run into the Liquidity Pools started for me about 23 Days ago and my pair of choice was BNB : RUNE. I am using Binance on day to day operations and pretty grew fond of it and thought that it got a good token with a good program built around it so I decided to move ahead and buy some BNB. The BNB price at that moment was of $45, while RUNE I was already holding and previous bought in for less than $1. Got some money into Binance and bought enough BNB to match my RUNE holding at that time. Next was to move both my assets on the Trust Wallet and connect that to BEPSwap, where I could access the assets and was able to add them to the pool.

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In the beginning I was watching the pool day by day, sometimes showing some profit, other times showing some loses. I didn't understood how it can vary from one day to the other as in my mind it should only go up. But after I have read a little bit, I understood that the impermanent loss is a process that takes place when the price of one asset moves up and the pool takes a time to balance itself through arbitrage opportunities. In that time, as the name is self explanatory, someone can go on the red.

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As the time passed I have seen that less and less times I would see my investment go on the red side and it started to build up on the green. Now that there are 23 days since I have added to the Liquidity Pool I can see constantly that even if the tokens vary in price, I am still saying on the profit side of things. And at the moment I am gained 3.93% from my participation which translates to +$261.12. I can just wonder how I will close a month, but I believe that things should improve and might see a better return that currently.

While I have stepped into the Liquidity Providing game more cautious than others and didn't dive in the Ethereum based Pools, I think that this proves to be a good choice for me and I am trusting more and more this space. I am in the same time content about the return from the Liquidity Pool but also how the paired tokens are doing on their own. While I have chose BNB more because I wanted to participate as a Liquidity Provider, my initial price paid for it was $45 and now it reached even $110. The RUNE I got in for less than $1 and now it is more than $4.50. You can simply but love how things are piling up with the price improve for both paired tokens and with the Liquidity Pool delivering great gains.

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You made a killing here !
And no IL, instead impermanent gains on both side. Well done.

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Indeed I striked it gold with this one as both RUNE and BNB are mooning beside the Liquidity Pools gain. A happy pair to keep on rolling.

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I actually put some in the ETH/RUNE pool because in the long term I'm happy owning both.
But as you mentioned, I'm in the green but losing quite some RUNE in the process.

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