People are underestimating the chance Binance is gone from the market within a year or three. Legit chance Arthur Hayes and co. are singing.

https://research.paradigm.xyz/amm-price-impact I helped with this article for paradigm blog. It's a good overview of AMMs like Uniswap v2, Sushiswap, and Balancer.

There is a part 2 coming soon that focuses on sandwich attacks specifically

Hope some people learn something

Im nearly sure I bought into a scam, but trying to think how - can someone help explain?

I've been reading up on defi & liquidity providers, and some of the words make sense, but there's still a lot of gaps in my knowledge.

I decided to just YOLO and learn by doing, so opened up zapper.fi and sorted by highest ROI - SHIB/ETH was ~500% APY (it still is), liquidity seemed decent around $15mill, so I put in 14 ETH into the liqudity pool for a 0.1504% share. A few hours later my "investment" was worth 16 ETH, so I cashed out.

Was I lucky and got out before a rug pull, or is this how defi works? Was the profit something to do with the SHIB price as opposed to fees?

When you enter a pool using zapper and just one side of the liquidity zapper swaps half your eth for shib. When you exit I presume zapper swapped all the shib back to eth. In this case if you exited after a couple of hours for a profit what must of happened is shib rose in value relative to eth - presumably by approx 30% (7 eth worth went to 9 eth worth)
Fees and farm yields accrue over time so wouldn’t impact this transaction much

It is well worth staying in a pool for a while and using a spreadsheet to work out how it all works if you have basic spreadsheet skills. Dashboards can give you feedback on fees, farm rewards impermanent loss and such - i used those as a framework to write my own spreadsheet calculations to really understand what was going on. For a trial run I’d suggest a smaller size and maybe a less spicy pool to stop your temptation of cashing out...

You can view all the operations zapper did by opening up the etherscan for the transactions in your metamask. You will see the swap eth-shib and the reverse swap shib to eth as well as the add liquidity and remove liquidity

Thanks for the explanation, that makes sense what happened. I wasn't aware that the price movement had such a big effect on the PnL.

Im (vaguely) aware of impermanent loss, but I think this is different because I gained $ on the volatility and the chart I've seen never goes above 0% loss in value..?

A 30% move in the relative price of the assets results in a 0.9% impermanent loss.
In this case if you had just swapped 7eth for shib then reversed the transaction at the prices zapper executed for you and you didn’t enter the pool, you would have made 0.9% of 16 eth more.

Im thinking about staking some of my Eth on Binance with up to a 20% APY. The Eth Im going to stake Im 100% sure I dont want to sell in the next 2-3 years so I dont mind locking it up for quite some time. Im just a little scared the Eth 2.0 launch will prolong even further.

I mean can someone with 100% certainty claim that Eth 2.0 will launch in the next 5 years? Also, should I take something else in consideration before I start staking?

What makes you think with 100% certainty Binance will be around in 2-3 years?

Can you say with 100% certainty the Sun is coming up tomorrow? Of course not.

Damn you are annoying. (I will ignore so no reason in answer me, take your crusade elsewhere)

Let me rephrase for the rest of you. What do you guys think about the risk/reward in staking some Eth on Binance if you plan to hold longterm? Is there other options that are wiser/ have better return etc?

Bye!

You're asking dumb, lazy questions. Nobody knows, man. Obviously anyone would be guessing. DYOR. Grow a pair and figure it out yourself. My questions highlighted the lack of serious thought you even put into it before you posted. My questions highlighted your greed.

****ing nooby ass retail greedy investors.

100% chance you were a regular poster last bull run who is too embarrassed to bring back their original account

At this point Binance is hostile towards Ethereum. I would not use them to stake ETH. They also have far more regulatory risk than other CEXs.

There are DeFi options like Lido, other exchanges like Kraken, etc.

DYOR and decide what is best for you. I'm currently not staking any ETH in ETH 2.0.

Lido is centralized. RocketPool is the only decentralized option for staking ETH. 16 ETH minimum.

Thx man! Will do!

RocketPool is 16 ETH to run a node. You can stake (without running a node) for less - I think the minimum is 0.1 ETH.

Oh ****, really? Thanks! Let me check that out!

Big news day today.

https://a16z.com/2021/04/20/investing-in-aleo/

https://www.forbes.com/sites/stevene...h=1a9dda6c2b31

https://www.theblockcrypto.com/linke...utm_medium=rss

obv Ubisoft x Tezos and PayPal/Venmo upping their crypto investment

The Nance and Blockfi ...

Just a lot going on, per usual.

A few days in and i've been getting hammered trying to be a defi liquidity provider. It just doesn't seem profitable (to beat impermanent loss), unless the market is trading sideways. Im out.

LP is a whale-only game. Don't bother.

Starting to think there's a legit chance ETH flips BTC long-term.

Mark Cuban is on to something.

--

https://www.coindesk.com/maker-price...ld-assets-defi

Understanding liquidity providing takes effort and some basic analysis. A few days in you will frequently be underwater: the fees are generated reasonably linearly but the impermanent loss is lumpy and irregular - it comes and goes hence ‘impermanent’. Comprehending the non-path dependency and the magnitude of the loss is important.

I don’t think it’s a whale only game since everyone gets equal access and returns. I think it suits traders from traditional finance since most will have been market makers at some point and familiar with the ebb and flow. Uniswap v3 will probably polarise the users further, advantaging professionals further.

Hmm? Everyone doesn't get equal returns. You get returns in proportion to the liquidity provided. If you provided very little liquidity, gas will eat you alive. Please correct me if I'm wrong but I'm pretty sure about this. This is why APY% drops the more people/liquidity that joins the pool.

Joining and leaving the pool requires gas, no gas is used by being in the pool. Everyone in the pool receives the same apy. The apy drops if more funds enter the pool since the fees are split between more capital. At the moment the trade volume increases for the pools I’m in have offset the increasing size of the pools ie the fee apy has remained more or less constant

Depositing funds and withdrawing funds into the pool requires gas... what protocol are you using?

Uniswap and pancakeswap.

Sure gas is used at entry and exit - just like any crypto activity that will favour scale. Liquidity providing is no different in that respect than depositing in a vault or buying and selling coins.

I was using Sushiswap too but their new update really sucks in my opinion.