You are viewing a single comment's thread from:
RE: How to buy Bsteem at RobiniaSwap? (less than 200Steem)
hi @josevas217
I've small question related to liquidity pools and impermanent loss.
I'm trying to wrap my head around it and based on my understanding:
- currently price of RBS is 0.2$
- I would add my funds to liquidity pool (pair RBS-BUSD) in relation: 1000 usd / 1000 usd
in that case I would need 5000 RBS tokens and 1000 usd worth od BUSD. Is that correct?
Now, what would happen if price of RBS would:
a) scenario one: RBS would drop down to 0.1$ (50% drop)
b) scenario two: RBS would go up to 0.4% (100% increase)
I presume that the moment I exit liquidity pool, then I would end up still with 1000usd worth of BUSD, but amount of RBS tokens would be different.
Now, my question is: how many RBS tokens would I have at the end of the day (depending on the scenario).
Enjoy your weekend buddy,
Yours, Piotr
Hi @crypto.piotr
This is an interesting question. And to which I don't have an exact answer, I particularly had an experience almost a year and a half ago, in which it happened that the coin dropped considerably in price and I had it in a PAR LP, with BUSD. The detail there was that the amount of BUSD decreased slightly, but the amount of the other token simply increased, but that was because the price had dropped a lot. Now, in case the price goes up, I don't know what would happen, I must assume that the quantity of the stable coin will remain the same, but the other token will decrease in quantity because its price increased.
But I don't have a concrete answer, just speculations.