On October 1st RobiniaSwap was launched and at that time i took part in the liquidity pool. I took part in three different pools out of which one was blurt-bnb liquidity pool.
I remember i purchased 30000 blurt for $120 approx at that time and equivalent amount of bnb with that.
Then i took half of my investment and put it into rbs-bnb and steem-bnb pairs as well so i was left with only 15000 blurt and equivalent amount of bnb into the blurt-bnb pool.
Today when i withdrawn my liquidity tokens for the same i got back only 6700 blurt and 0.39 BNB.
blurt is almost 10 times from the price i bought it for RobiniaSwap participation and bnb is almost double it's price. So on paper it might look that i have suffered a nice loss but it is not how it looks like.
My investment at that time was somewhere around $300-350. but now i have $480 with of blurt and bnb thought the amount of bnb and blurt are not the same.
I am fine with whatever i have now but can someone tell me why did this happened ? maybe sometime with good knowledge of liquidity pools can tell about that.
Thank you
This is how uniswap pools work :-)
Luckily, both coins have risen - just that BLURT has risen more in % terms than BNB. You don't say how much BNB you put into liquidity, but you should have got out more - with less BLURT.
As you've also found, as both coins rose, your actual value in $$ has gone up.
You also need to deduct fees and add the income from swap fees, but over such a short period they are not so significant.
i got more bnb then i initially put in with blurt in the Liquidity pool and in total including fees i am still in profit.
I also was studying about Liquidity pools today and i came to know that if a single coin goes up or down then there is a impermanent loss chance.
Thankfully in this case both coins rised and in $$$ i was not in loss.
Correct, whenever the swap price of the 2 coins deviates from when you added liquidity, there will be some IL - funnily, in your case, the IL still showed a "profit" (lol) but was still less than holding those coins outside the pool ;-)
yes it is quite less , leave about me imransoudagar had 30000 blurt in liquidity pool but now has less than 16000.
Thats almost $500 less as 14000 is now around $500. anyways it was a event that taught me about Liquidity pools.
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