SIngle sided liquidity for PRV gets 21% APY short term and 40% on a lock.
XMR gets 13%
BTC gets 10%.
The LP for XMR and PRV pays out at a rate of 8% and the BTC PRV pool at 2%.
Why would anyone provide liquidity in the pools for XMR, BTC and PRV instead single siding it? The way I see it no matter if any of these assets go up or down in price one would be better off staying out of the LP’s. Am I missing something? Is there a benefit to the platform by going one way or the other?
I think I understand it as, you make an APR dividend in addition to what you make, from direct coin payouts from fees. Amounts change a lot so really it’s an unknown amount to be made in rewards.
I made 3x $ amount in LP, with a third of investment amount, that I had in provide. ($300 total in LP paid more in rewards than $1000 in Provide)
I am with you on that and still do not have a full understanding of providing single sided liquidity.
Does it really help the ecosystem to provide one side? And if so, how does it help. I would think it’s better for all of us to provide to 2 sided pools. Unless if when we are providing to a one sided provide the people from Incognito are somehow utilizing that liquidity for the ecosystem as a whole. Anyone have any links where they go into detail on that?
Did anyone ever hear back on this?
Not that I am aware of.
Hello @Privacy4Liberty,
Please see the following forum discussion: What are the risks of keeping bitcoin in provide?
That thread does not explain the main question of this thread.