At Uniswap we get dividens of all tradingfee that is paid at that pool. We put 800USD in DEC/ETH-pool about 25 days ago. Was it good – or not… and what is the risk of doing it. This is my answer
+25 % after 25 days – In Uniswap
To get 25 % in 25 days i awesome!
We put 800USD in to the pool 1 oktober and now it is worth 1000USD. At a first view it looks very good. And of course it is. If someone asked me 1 oktober ”whould you be happy to get 25% in 25 days?” I would have accepted it every day in week.
The the fees we have get is only 1,70 USD. It is about what we have paid in transactionsfee so far. To get 1,70 USD for holding 800 USD in 25 days is 0,2 %. This is not where the value comes from.
The value comes from ETH and DEC raise in marketvalue.
And here we can see the risk with Uniswap. Loosing some good profit IF a coin goes like a rocket….
IF WE HAD HOLD IT
If we had not used Uniswap – What had happend to the value?
400 USD in DEC
400 USD in ETH
ETH – in 25 days go up from 368-413 = 12 %
DEC – in 25 days from 0,000490 to 0,000908 = 85%
The Ether should have been value 448 USD
The DEC should have been value 740 USD
So instead of get 1180 USD we have paid some fees and have the value of 1000 USD…
Why – Because of the marketrisk of uniswap
When you use Uniswap the service will automaticly balance your holdings so you have 50% in value of both. So what have happen here is that we have get more EHT and less DEC.
I think this was very intresting. IF you think a coin will go to moon – keep it. IF you think it will be a lot of trades but not go up very much – uniswap will give best return.
BUT THE LAND….AND TICKETS…
Yes – We went in to this pool ONLY to get LAND and Tickets. I will be back when I did get some and tell about the return. So far – I am stil happy for 25 % in 25 days.