RE: A New DeFi Lesson Learned: Why My 70% APR LP Become 45%

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Thank you for your post, which aligns with the conclusions I recently reached.

I started playing around with liquidity pools to see if I could earn some passive income by locking up 2 tokens.

I didn't focus much on APR percentage gains. What I really wanted was to learn and collect second-tier tokens.

It turns out I started to see that the returns were lower than leaving the tokens staked. Initially, I thought I might be doing something wrong. But you explained well why betting on pools could be an illusion.

I started studying pools a bit and saw a tutorial where the instructor said it was a mistake to create pools when the crypto market was down. The choice of currency pair was also important, because the more volatility, the fewer gains (and there can even be losses).

Although my investments are much smaller than yours, I realized this "illusion" of potential gains.

I still maintain 2 active pools to acquire some tokens. But the order will soon be to drain the pools and put everything into staking. Because, when you think about it, and as you prove, what could be advantageous can be disastrous.

Thank you very much for your teachings.

hive-167922
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Thank you so much for your encouragement @cryptoreforma!
My revisition more intuitive than technical. You know we are learning by proof and mistakes.
Maybe someone can explain the technical aspect.
Good luck in the Crypto Journey!

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I prefer intuitive analyses to overly technical ones. Based on experience, through trial - error - learning.

Thank you very much.

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Oh, that was the expression I was looking for in my mind: Trial-error!
That's the way I am improving little by little in the crypto-space since 2017.
Thank you for mentioning it!

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(Edited)

I arrived late: the end of 2023. Late, or perhaps not. Because the crypto-finance paradigm has radically changed.

That's why I forgo many technical analyses and value more those who conduct tests and share their knowledge – as is your case.

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Doing that way we develop a kind of sens/feeling to interpret some technical. For example lots of Indicators when at the end is better to decide for two or three and practice, until your intuition gets better idea/feeling of a chart move.

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Without a doubt, you're absolutely right. I saw your strategy with L2 tokens; the LEO triad is very good.

I was a big fool; I invested in the LEO strategy (Surge, LSTR), but when the value of HIVE dropped to 0.15, I switched everything to have HPower. Now it's fallen even further.

Well, I learn from my mistakes.

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