Adding Moons to the LP – Two month review

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COIN ADDED TO LP VALUE ON 8th APRIL CHANGE IN LP TODAY VALUE TODAY VALUE IF NOT IN LP DIFFERENCE ETH 1.91349114 £2,879.06 0.62% 1.43718 £2,175.77 £2,896.87 -£721.10 MOON 13,449.0742 £2,708.64 -43.88% 18,429.436 + 889.764 rewards =19,319.2 £2183.62 £1,520.13 £663.49 SUSHI 0.00000000 £0.0000 -24.94% 4.36571 £2.97 £0.0000 £2.97 TOTAL TOTAL TOTAL DIFFERENCE £5,587.70 £4.362.37 £4,417.00 -£54.63 CHANGE SINCE 8th APRIL CHANGE IF NOT IN LP -£1,225.33 -£1,170.70

Quick note, as per previous post, this is MOON which I swapped for other coins, not what I’ve earned on this sub. When adding liquidity, you should only add a maximum of 25% of your earned MOON, or your future pay-outs will be reduced.

I made a post a month ago, detailing how my decision to add MOON to the LP was getting on. It’s worth mentioning that I actually made a mistake in that post… I’d claimed that I was £85.80 better off, but I’d forgotten to account for the ETH, when adding that month’s rewards back in. I added £76.31 worth of additional ETH (matching the value of MOON rewards), so I was actually only £9.19 in the green.

Anyway, on to month two (spoiler alert – it’s not great)…

ETH is roughly the same price today as it was a month ago, but MOON has dropped a further 30% or so (currently down 43.88% since I added to the LP). As a result of this, impermanent loss has completely overwhelmed the £100.57 in rewards, and I’m sitting -£54.63 in the red. This is the big risk you take when providing liquidity – the value of one coin changing drastically, relative to the other. Despite this, I’ll continue to provide liquidity, re-stake my rewards, and add more ETH.

Hopefully, month three update will be a little more positive.