If you haven't joined Pool by Cake yet, or perhaps if you haven't checked your balances recently, you might be missing out. Don't worry -- not quite as much as the people on the hype train were predicting -- but a little bit, at least.
Earlier today while thinking about removing my BTC from the liquidity pool, I noticed that Cake was offering over 3000% APY on the LTC-DFI pair. HOLY WOW! Naturally, I bought some LTC, transferred it to the protocol, and switched pools. Several hours later, after my position had been established, I noticed that the APY magically changed from 3000+% to 77.84%. Wow, Cake... I thought this was supposed to be the "most transparent" somethingorother. Maybe it was a kind suggestion to exit stage left before the pump. Sure.
Either way, I was still quite pleased when I removed my BTC and DFI from liquidity mining after a little less than three weeks to use my DFI for mining the LTC pair instead, and noticed that ZERO impermanent losses were realized! In fact, I withdrew my balance at such a time that I INCREASED my BTC position by a little bit. Alright! That makes up for the extra ~30 cents I had to pay for each DFI that I bought on the platform 😏
... Which reiterates to me that the right strategy for utilizing liquidity pools is to WRITE DOWN THE PRICES AT TIME OF DEPOSIT somewhere. That way, you can choose a more profitable time to get out.
Impermanent loss does not have to be a loss. It's just a rebalancing. If you are smart, you can use it to your advantage.
lol ignore this if you're not a noob (but do it if you are!):
If you use my referral link and deposit $50 worth of an asset to the protocol, you get $30 worth of DFI tokens (locked into a 37% APY staking pool for 180 days), which are likely to do quite well in the future anyway, plus you can get mad gianz from liquidity mining normally non-minable assets (like DOGE and LTC), or 5-8% on your BTC, ETH, or USDT in a Lapis staking pool. If you deposit BTC, be prepared to pay a 0.0005 BTC fee for withdrawal. The other withdrawal fees are much more normal/reasonable.