My journey into being a Thorchain / $RUNE LP Provider ! 🤑
Hello HODLers and Liquity Providers,
After updating you with my great AVA investment a 18-20 days back, $AVA is up more than 100% since I bought it. You can read more about it there: Reached $AVA Smart Level 5 & First Dividend Payment from Travala !
Today I want to tell you about being a LP on Thorchain $RUNE for the past 2 weeks and a half on the BEP Chaosnet.
I was in profit for all of them thanks to the great price action of the $RUNE Token used as the 2nd leg of all LPs on the Chaosnet BEP platform.
With the huge move recently some of the positions are negative in terms of LP vs HODLing both assets separately but this should fade over time as I collect LP fees.
For information purposes, the Performance is +92.9% for the AVA/RUNE pair and I got 2.64% performance more from being a LP than having both assets on standalone. This means that over a Year, annualizing this gain would mean I would get +64.92% APY performance being a LP versus holding both assets separately.
As you can see the best pool is the $AVA / $RUNE one because both assets went up quite a lot therefore not making me have too much impairment losses.
What I like about investing through LPs is the fact that if markets go down the loss is less important and therefore I have the choice to pull out the liquidity if I feel one of the two legs of the LP pair is undervalued.
For example: If I have $Rune + $BTC. Rune stays stable and BTC drop by 50%. I can pull out my LP and I will have more BTC than I put in first and less RUNE). (This example is fiction of course !
The future of Thorchain and $RUNE
Honestly, I feel quite bullish and I am not selling my $RUNE even if I already made a +75% gain during the past 3 weeks.
First they have penetrated ETH community with a kind of partnership with SUSHIswap and the first $RUNE tokens on the Ethereum network.
I have not been following everything going on with the $RUNE project but the fact that it seems that implementations with ETH (ERC tokens) or even BTC are going faster than expected.
If they succeed it would be a big achievement and great for us to not have to rely on wrapped tokens to interact between blockchains.
Let's see what Thorchain will bring on !
PS: If you are a RUNE user, please point me towards great videos so I can dig deeper and consolidate mu knowledge of the project.
Poke @trumpman @empoderat @khaleelkazi @jk6276
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https://twitter.com/VinnieLemon/status/1353479580372365312
I am also in the red with the BNB : RUNE pair and I hope that it will green up in the future. Somehow I was expecting more from it, so not sure if this will be profitable or not. Probably the pool is in the impermanent loss phase, but I thought that LPs would provide daily rewards or something like this. It seems not...
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Yes, this is what I did not understand. I got that LPs got fees but do we have extra Liquidity Provider incentive paid from the "Thorchain Pool". It seems not but I would love it to be confirmed.
Thanks for the comment.
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thanks for this news about AVA and RUNE. I have not invested in these cryptocurrencies and I am regretting not having done so. AVA was a token that caught my attention months ago, but I didn't purchase.
Well, always do your own research but I am glad I did and I do not plan on selling. I plan to use my AVA dividends and RUNE to provide more LP going forward.
Cheers and thanks for the comment
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That's some astounding returns. Are we going to see a Rune/Leo pair like Eth/Leo? It will be nice
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Indeed, that would be amazing ! Let's see if it happens :D
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Great to see you participating in Thorchain pools. I couldn't muster up the courage for it until now :)
I played safe by staking in runevault but chose to sit idle after it got retired.
Didn't had enough time to keep track of the market all these days. And I also thought that HODLing would yield better profit than incurring IL, but perhaps I was wrong here, idk. Will try to participate in some LP after RUNE get past $6. See you there! ;)
Hello there my dear @xyzashu ! I am happy to know that you are also invested in this cryptocurrency. I have to say I was et expecting it to go si fast up but now that it did, I like being a LP for when it might consolidate, it is so much less stressful.
Cheers mate and tty soon