How much have I made with XYO/ETH Uniswap Liquidity?

By carlkidcrypto | Carlkid Crypto | 15 Jan 2021


Introduction


About 6 months ago I decided to jump into the liquidity game. I had recently discovered an app called Coin App and of course, I wrote a post about it. Since I downloaded the app many moons ago I have received a total of 61,000 COIN tokens. To get XYO it's a simple process of converting in-app COIN to XYO. This is a gasless transaction and funds will be sent to the ETH address you provide in the app. So in my case 61,000 COIN got me 103,900 XYO tokens. Now the questions remain what did I do with 103,900 XYO tokens which at the current price is 103,900 * 0.0002 =  $20.78? Well, I dumped some into the Uniswap XYO-ETH Liquidity pool and converted some into ETH. For this article let's focus on my actual investment in the XYO-ETH pool.

XYO Price Uniswap

Initial Liquidity


COIN App Order History Image 1Coin App Order History Image 2

61, 000 COIN ~ 103,900 XYO

Okay, so using the magical tool known as Etherscan I went back in time. Turns out I converted 15,846 XYO to PAXG which went to my BlockFi interest-bearing account. Nice! And 20,000 XYO into 0.025157211919368475 ETH. Then if we do some quick math I provided 68,054 XYO and 0.152126211896265952 ETH. The extra ETH that is missing came from Brave Rewards and Publish0x Payouts that were converted into ETH.

Now we are ready to calculate the ETH transaction fees. Obviously, I didn't do my initial liquidity investment in one transaction instead it was across several transactions. The total counting the XYO to ETH is 0.030704272 in ETH transaction fees.

Current Liquidity


XYO ETH Liquidity Image 1

XYO ETH Liquidity Image 2

XYO ETH Liquidity Image 3

ETH Price

If we simply look at the Uniswap graphs then I have made a total of $53.84 + $3.81 = $57.65 by providing liquidity. Not bad right?! Also, just as a side note I have two graphs because I swapped from using Metamask wallet to Argent wallet for long-term holding.  Anywho if we look closer at the graphs you'll notice that I initially invested  0.152126211896265952 ETH and 68,054 XYO. So where did my ETH go? Well, that is due to something called impermanent loss.

However, this rule imposes significant costs on liquidity providers. All liquidity providers
have exposure to ETH, and suffer impermanent loss based on changes in the prices of other
assets relative to ETH.

You can read more about it on Uniswaps whitepaper

Okay great so am I making any money? Let us see. My initial investment was 0.152126211896265952 ETH and 68,054 XYO but right now I have 0.048 ETH and 252,780 XYO. So I gained 252, 780 - 68, 054 = 184, 726 XYO and lost 0.152126211896265952 - 0.048 = -0.327873788103734048 ETH. Well not so fast because the gain in XYO is 184, 726 * 0.002 (current XYO price when I took the screenshot) = $369.452 and the loss is 0.327873788103734048 * 1183 (current ETH price when I took the screenshot) = -$387.875. Shit, guess I lost $369.452 - $387.875 = - $18.423 😂😢!!! @walkonwayvs   Or maybe I screwed up my math somewhere which is highly possible lol. Either way, it looks like I came out short $20.

Profit?


Uniswap header

Uniswap transuniswap trans 2

Wait a minute! Uniswap has this neat feature where it does the math for you. Let us see how I did.

  • Total value: $36.75
  • Token Amount: 0.152 ETH
  • Token  Amount: 68, 054 XYO

Excluding transaction fees and all that crap then $112.24 (total liquidity including fees) - $36.75 = $75.49 is my profit!!!!?????🤔

Summary


Well, to be honest, I will take that last number (+$75.40) in the Profit? section and count that as a win! It has been fun doing this post and learning along the way. As always all my reference material is below, feel free to comment, and I hope you enjoyed this post. Lastly, pardon any typos and in this special case any major or minor math errors. Until next time! Cheers!

Note: All images are courtesy of our best friend Uniswap using a fancy tool called screenshots!

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carlkidcrypto
carlkidcrypto

I think crypto is awesome. I am by no means a pro. Is it the future? Possibly? Only time will tell! Did I mention I like to read!


Carlkid Crypto
Carlkid Crypto

A blog for my current crypto interests, crypto tokens, crypto art, and crypto in general.

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