@BehiverOnNoiseApp
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Now that we are all involved in DeFi like CUB Finance, let's see the differences between participating in a Liquidity Pool versus Staking into the Den. So here are some explanations for those. The Liquidity Pool is a paired asset pool where you split those in equal amounts and provide liquidity for those wanting to trade with very small slippage. The Den is a single asset pool where you stake it inside the DeFi pool and are rewarded with a percentage of the inflation. This explanation was whispered by Neal during the Leo Finance AMA and I find it pretty comprehensive, don't you? #Leofinance
6 comments
As always, you give the best information at the best time ... at least for me. Because I don't understand this new world of DeFi at all, it was painful for me to send the few CUBs to Farms or Dens, I didn't know what to choose and I finally chose Farms CUB / BNB. It took me a few good days to get there and, of course, I lost the start. Now I don't know what to do next ... but I found out from you what the difference is between Liquidity Pool and Den.
I think that at this point you cannot go wrong one way or the other. I am in the Top 3 Liquidity Pools and also in the Den. A little bit of risk diversification if we can call it so considering that we are farming CUB tokens. Still, considering that the next week the CUB rewards per block will be reduced from 3 to 2, the price should improve, at least theoretically.
Thanks! That's what I thought and I'm learning something anyway. One more question, is Liquidity Pool forever or can I retire at some point? (I hope you don't laugh at my ignorance)
No worries, you can exit the Liquidity Pool at any point. When doing so you need to check in order not to be affected by Impermanent Loss as if you don't choose your moment right it can give you loses compared with the moment you have entered. I think you can check the status of your assets in the pool (there is link on discord, but don't remember it now) in order to see on exit the value of the paired asset that you will get out of it.
Thanks a lot! You've been very helpful and have given me confidence. I will look for the necessary information not to "surf at night", and I saw somewhere that there is talk of going out, I will try to find out more but you gave me peace of mind that I did not do something wrong. It's not about the amount of money I can lose, it's about knowing what I'm doing.
Knowledge is power!