Tool for CUB-Finance: Calculate the impact of Price changes on your Amount locked (FARMS)

in LeoFinance2 months ago

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Hello community,

About a week ago I joined Cub-Finance myself.
As this was my first DeFi-Project that I got involved with, I had a few questions in my mind.

How does the value of my staked LP change when prices of the tokens change?

One of these questions was, how Price changes of the underlying assets (CUB in my case) impact my USD amount that is locked.
I've read a few times, that the Dollar amount does not change in a Farm, however after doing a little research this is not true.

As I wanted to know exactly how, for example, a 100% increase in CUB Price will affect my profits of this increase, i digged a little deeper and found some formulas.

Based on them and also because I couldn't find something similiar, I have build a little tool that helps calculating the performance and also the difference to just hodling the coin (without profits from harvesting.)

You can find it here:

POOL WORTH PRICE CHANGE CALCULATOR

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The usage is pretty straight forward:
The Green Box is the Input Box:

Amount Locked in $ = Total Liquidity in a certain Pool
Price Token 1 = Price of the token where you want to simulate the price change
Price Token 2 = Price of the second token

Own Amount in Pool = Your total amount in USD, that is locked in this pool
Price Change Token 1: The Price for the Token, that you want to make your simulation based of

On the right side you can see the outcome:

The value of your holdings after the price change, as well as how much of each token you will own if you unstaked at this point.

And also Performance measures, compared to simply holding the token.

I hope this little tool helps some of you!
If you have questions, feel free to ask.
Also, if you are interested, I can explain the calculation process behind it in greater detail! Just let me know! :)

P.S.:
I really love CUB-Finance.
I initally started with 400$ in CUB-BUSD Farm about a week ago, but I added another 100$ in the CUB-Den this week.
If I can free up more funds, I will for sure invest more!

Posted Using LeoFinance Beta

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There's a tool for it. I just learned about it today: https://decentyields.com/impermanent-loss-calculator Ignore the icons and the crypto chosen use the price change % only.
I learned how to use it and how impermanent losses work on this video

great source of information.

I do understand it myself, that'S why I have built this tool.
The tool you posted, I do not think it is exactly the same, as it does not allow to customize things right?
However it for sure looks more beautiful :D

Thanks anyway!

Posted Using LeoFinance Beta

Thanks for the video. I've read so much about impermanent loss but still don't really get it. Maybe this will be the one where the penny will drop. 😂

!ENGAGE 10

Posted Using LeoFinance Beta

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

Thanks for creating and sharing the tool. I've added it to my long list of stuff to look at regarding CubDefi. There's so much to learn! 😊

Posted Using LeoFinance Beta

You are welcome!
I‘m happy that you find it useful! :)

Posted Using LeoFinance Beta

Thanks for doing this! Very cool!
I am also about to free up some funds to get more involved :)

Posted Using LeoFinance Beta

You are very welcome! Thanks for the comment!

Did you alread put more into Cub?

Posted Using LeoFinance Beta

I have some streams coming in soon, and they will be redirected :)

Good job, nice share

Posted Using LeoFinance Beta

Thank you :)

Posted Using LeoFinance Beta

That is very interesting ! Going to play with it right now.

Thanks for the heads up !

Posted Using LeoFinance Beta

It was a pleasure!
I thought, if I do something I can share it with the community. Why not?

Posted Using LeoFinance Beta

Very interesting tool! Thanks for the efforts.

Posted Using LeoFinance Beta

Thanks for the feedback!

Posted Using LeoFinance Beta

I want to understand this more, I think I have put the numbers in the proper feild. How often do you harvest your CUB-BUSD?

What do you want to undestand more? :)

Not really often, because I only have 400$ in it and the transaction fees would therefor eat a lot of profit....maybe once in a week

Posted Using LeoFinance Beta

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Yes that's true ... but the BNB grew in a week ... and the CUB fell ... so there is no real math

Posted Using LeoFinance Beta

What? I do not really understand 😄

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