How I Lost 7% Of My CUB From A Pool In 30 Minutes - Things To Pay Attention To
I'm continuing my roller coaster ride, one hot, one cold and today was a day for a cold shower for me 😂
The Cold Shower
Yesterday I had the perfect plan, I knew exactly what I have to do and when, in order to exit the CUB - BUSD LP with a profit. This morning when I woke up I saw it's nearly time to act and very soon I pushed the button and exited the pool. And this is where things went terribly wrong.
CUB was at $3.258 at the time of me getting out of the CUB - BUSD LP and that price was fine for me. After I withdrew from the pool, I got a call, an urgent one and had to leave immediately, without delay. I was missing 30 minutes, not more, and when I got back, CUB was at $3.809.
Now you may think I was lucky to pull out of the farm in time, but reality says otherwise. The truth is, pulling out of a farm means more steps, not just one.
First you have to withdraw your stake, then you have to withdraw your liquidity, then you are done and safe. I had no time to withdraw my liquidity and when I did, CUB was worth $0.551 more, which means I got more BUSD and less CUB.
At first glance it may look like a loss as I got less CUB, but that's just one way to look at it and not the right one. When you're calculating results, you need to take into consideration all factors, in this case the amount of CUB I got from farming, plus the $0.551 difference/CUB that I got in BUDS.
I'm not going to give you exact numbers as I'm still a very small fish here and the stake I'm playing with is also small, but I can say I gained $25, just from the price difference, plus the CUB I got by farming. This is more that the CUB I lost and all this is in 2 days.
I'd say this was a fun game, not to mention the learning experience.
The profit I made plus the BUSD I got from exiting the pool serves me for my next project. I'm not planning to exit CUB DeFi. All I've got so far is compounded in different pools I think will do good in the upcoming period.
At the moment of writing CUB is on it's way back, it's $$3.543, which obviously would change things if I would exit the pool not, but I'm more than ok with how things turned out.
This morning when I saw CUB went crazy till I was away, I felt a bit disappointed, although it wasn't entirely my fault, but after doing the math, I'd say it's more than ok.
Not to mention I converted my BUSD into BNB at $400, which since then went to $419.9139, so it's a win again.
Big Fish Making Waves
Last night, while I was doing the math and planning what to do, I saw a big jump in APR and a sudden change in CUB price. The APR increased with 80% in a minute and possibly the price as well.
This morning I saw the same thing again. Big stakes entering and exiting the pool causes the APR fluctuation. I would be more than ok with 450 - 500% but what I want counts less in this case :)
Ok, so this is what I went through today, at the end of the day I'm more than satisfied with how things turned out and looking forward to my next adventure. This is a fun playground :)
Posted Using LeoFinance Beta
I like that you can look at the screen and see the playground.
Posts like these keep me learning.
Posted Using LeoFinance Beta
What a nice feedback! Thank you! I'm glad if my posts are of help :)
Posted Using LeoFinance Beta
Me too. 😊
!ENGAGE 10
Posted Using LeoFinance Beta
ENGAGEtokens.Glad your enjoying your farming.
I've never been that clear about why impermanent loss is considered, on the whole, to be such a bad thing. It only seems to be that way if you're really attached to one token over another. If you lose on one you make on the other don't you so overall it's not such a loss.
But I'm probably missing something. 😂
Posted Using LeoFinance Beta
Yes, that's correct but things are not so simple. It all comes down to what coin are you interested in, which one you want to get more of.
In my case, CUB was paired with BUSD, which is a stable coin. CUB can go up in the future and it will (big time), while BUSD will never as it's a stable coin, right? So it counts, especially when you're playing with huge money, which is not my case.
If you're pairing to tokens, of which both can go up or down, you need to watch out which one can go higher and which one you want more.
Posted Using LeoFinance Beta
That's why I'm in the DEC/BUSD farm. I'm happy with either for now. 😊
Posted Using LeoFinance Beta
When I saw CUB at 3.8, I immediately thought of a whale buying hehe. Keep farming every day and you will get that 7% back in no time.
Posted Using LeoFinance Beta
Basically I didn't lose as I got more than that 7% loss in CUB, could have bout CUB with it. No worries, it was a very good day for me, just a little different from what I planned the other night.
Posted Using LeoFinance Beta
I'm sorry if the waves were a bit to high for you...
Posted Using LeoFinance Beta
I turned the situation in my favor, so no worries.
Posted Using LeoFinance Beta
I'm glad it turned out okay for you. I don't know if I am doing all the right things, but my pile is growing so.. I'm calling it a win
Yes, it was a great day after all. If you're portfolio is growing, they it's ok.
It's time consuming to watch the market and track everything, especially if you're in a lot of farms but it worth it. It's a fun game.
Posted Using LeoFinance Beta
From the title i thought you lost a lot. but after reading the full post, i am glad that in the end you made a decent profit. In crypto as things are changing so rapidly, so timing is everything, a right move a t right time can take you to moon and a wrong move at wrong time can push you to a ditch.
Have a Safe Farming
Yes, indeed, timing is everything and you have to watch the market closely if you're farming. However, I'm not the adrenaline junkie type, so these are just small adventures, to learn and have fun :)
Safe farming to you too :)
Posted Using LeoFinance Beta
Well, I wake up to a price surge. Seeing cub at $3.8 I thought maybe it would make its way to $4 so I could sell and buy back at a lower place but it didn't. So I wait for another price surge. 🙂. It is a fun and easy way to make money.
Posted Using LeoFinance Beta
As long as I've watched CUB today, it went from $3 to $3.8 but I consider it too risky at this point. I would not sell anyway, but I think it's too risky as it's still at $3.362. What do you think?
Posted Using LeoFinance Beta
Well I won't sell for anything less than $4. Selling anything less that is risky to me because price could go up significantly and not come down for a while. So I won't risk it.
Posted Using LeoFinance Beta
I do not like these things
Buy then price go down
Sell then price boom
It is Postulates in trading
Posted Using LeoFinance Beta
The dynamism of DEFI is alive.
You need to act quick and plan
your movement throughout the day.
So far you are doing well.
Continue to play your hand.
Posted Using LeoFinance Beta