It is said that a large-scale ink splash occurred a few days ago. The culprit is meerkat.finance. The scale is 17 million dollars.
For more information on this, please refer to the article below.
[Defi Record] A record-breaking event of 20 billion won occurred
It is scary to see such an article. Because you can blow your precious assets in one shot.
So now I want to approach it conservatively. Lowering the rate of return and stably...
It's easy to say, but there's no way to invest like this in the world, right? The risk of return must be carried by the investor in any form. But, please don't miss it!!
So, I organized DeFi, which I was investing in, and supplied eth-usdt lp to uniswap.
In uniswap, if someone converts eth to usdt or usdt to eth, there is a 0.3% fee. This amount is paid to the LP supplier. If eth-usdt is in high demand, 0.3% would be a very, very large amount.
If you want to sell LPs and sell commissions, you will need to check the expected rate of return. Let's check what the daily transaction amount is in uniswap.
Information on transactions occurring in uniswap can be found on the site below.
The total LP supply amount is $3.9B, and the daily trading volume is $864M. The total LP supply amount in KRW is 4.3 trillion, and the daily trading volume is about 94,000 billion.
With this amount of trading, I wonder how many exchanges are ranked. You can find information about this on the site below.
https://coinmarketcap.com/rankings/exchanges/
In summary, Vebys is currently the No. 1 central exchange in trading volume, and the Decentralized Exchange (DEX) is MDEX. uniswap ranks second among DEX. This amount is ranked 51st in terms of central exchange.
If you trade hard on the central exchange, you only pay commission, but if you supply LP to DEX, you will earn profits. In simple terms, it can be understood as a concept in which LP suppliers share DEX revenue.
If so, it would be more advantageous to supply LPs from MDEX, the No. 1 DEX company. However, if you ask why uniswap supplied LPs, it is correct to answer that you chose uniswap because it is the DEX support. Of course, I thought uniswap was number one. MDEX has grown a lot. It seems likely that pancakeswap will beat uniswap sooner or later. After looking at this data, I think I will have to think a little when making additional investments. This is because uniswap has a large eth gas fee, so it is difficult to invest a small amount.
There are tons of LPs in DEX. Of these, LPs with many transactions must be supplied to increase the profit rate. This is the LP list with the highest trading volume in the last 24 hours.
The figure on the far left is the expected rate of return, assuming that the fee for the last 24 hours comes out within one year. 45% a year is not bad. You don't have to worry about getting stuck, you don't have to go in and mine every day, and if you just stand still, you'll earn money.
Now, I will summarize how to supply LP.
First, select the desired LP. For example, ETH-USDT. Decide how much you want to invest. After that, you buy eth on the exchange for half the amount you want to invest. You cannot buy and send usdt on upbit. You can buy usdt after depositing KRW in huobi korea, but you cannot withdraw for 3 days. Therefore, one additional suitable foreign exchange should be available. The remaining KRW is purchased as a token with low commission and fast transfer and sent to overseas exchanges. I mainly use LTC in this case. EOS is also used frequently because it is fast to transfer and has a low fee. Buy the appropriate coins, send them to foreign exchanges, and exchange them for usdt.
Next, to create an LP, you need to install a separate personal wallet such as meta mask. You also use mobile wallets a lot these days. It was nice to use the token pocket as well. Choose an appropriate personal wallet and install it on your PC or phone.
If you do not have an eth personal address, you can create an eth address in your personal wallet. If you previously had a personal wallet, send eth and usdt to the address.
At this time, since the Ethereum chain is used, there are a lot of fees. Please note that the fee is very cheap if you transfer in the early morning hours. However, no matter how cheap it is, more than $30 at a time comes out. Please refer to this as well, as the amount of investment must be certain to cover the gas cost.
It is assumed that eth and usdt are ready in your personal wallet.
The next thing to do is create an lp.
LP can be made at the address below.
https://app.uniswap.org/#/pool
Click Add Liq.
Select USDT, connect your wallet, and you will see the amount of tokens in your wallet. After entering the quantity to be supplied by LP, press Supply to finish. It's very simple.
You can see how much profit was made from the LPs supplied in this way from the link below.
When you register your wallet address, the profit situation is updated in real time.
https://info.uniswap.org/account/
It was easier to supply LPs than I thought. After a few days of running, it seems that daily profits are about 0.2-0.3% (60-70% per year). I think it's great if this rate of return comes out without paying attention to anything. In the future, it seems that some of the investments will have to be moved to the LP.
However, LP supply has the biggest drawback. That is, if the price of the target cryptocurrency falls, it can cause significant losses. With the commission income from LP supply, the loss due to the decline will be compensated to some extent, but if it falls below that, it is inevitable that loss will occur. Therefore, it is necessary to choose the tokens to be supplied as LP.
LP providers will incur non-permanent losses assuming that the tokens go upward in the long run. You should supply LP with expectation that this loss will be compensated in large part by commission income.
I believe in the future of Ethereum, so I intend to invest in the long term. In particular, I think the future value of Ethereum is high because Ethereum 2.0 is expected to solve the shortcomings of Ethereum at once.
If you make a profit while investing for a long time, it would be a stone or two.
Good Luck ^^
interesting, thx brou