My Little DeFi Experiment

By Jelly Fish | cryptofun | 4 Sep 2020

Even before the current DeFi hype, I'd wanted to jump into this crazy bandwagon. But unfortunately, all that time I had neither money, nor time to taste the game of DeFi out.

And recently I learned quite by chance that EOS-based Newdex DEX where I swap my Prospectors gold pennies partnered with some EOS-based DeFi project called Defibox.

I promptly gathered all my EOS I had at Newdex and sent them to that magic DeFi box!

Defibox guys launched several liquidity pools that rewarded providers with the platform's own BOX token.

I joined EOS/USDT pool and decided to send my BOX rewards to EOS/BOX pool later. And so I did! I got some BOX from EOS/USDT pool, joined EOS/BOX pool, got even more BOX, added them to EOS/BOX again, and so on.

Everything was just fine until the day BOX price jumped from less than 1 EOS to about 8 EOS -- and TA-DAMM!!! I'm in impermanent loss...


Note the Current liquidity and Current profit numbers in my EOS/BOX pool. As far as I can understand, if I withdraw my EOS/BOX liquidity right now and swap my BOX to EOS -- I will get about 1 EOS less than if I had been simply hodling BOX in my wallet. Weird...

What's the moral then? Millions are made not by hodling stable shit in DeFi boxes, but hodling in your wallet some unstable shit that can one day go +800%.

Anyway, I consider my little DeFi experience a success. After all, in EOS/USDT pool I'm still in impermanent profit.

Also, maybe sharing this at LeoFinance will get me some impermanent profit too.





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Jelly Fish
Jelly Fish



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