The SPS airdrop ended last month and you can now earn SPS by providing liquidity to specific pools in Splinterlands. It took me some time before I finally decided to go through with this but I believe it's a good way to go forward. There are some risks to doing so but I have decided to go through with things as I believe in Splinterlands.
Liquidity pools
Above is the list of pools that you can on the SPS management page. It shows the current in-game rewards for doing so and the current in-game APR for providing liquidity. I just decided to do the simple way of converting some of my own SPS and VOUCHERs in-game into their respective SWAP.HIVE pools. This means that I converted half of my tokens into SWAP.HIVE before providing liquidity into the pools. You can find a tutorial to do this here.
Other advantages of providing liquidity to diesel pools
While there are ways to provide liquidity to the pools outside of Hive, I prefer the ones on Hive because there are some extra rewards for doing so. This includes (1) Existing Diesel pool rewards and (2) Fees generated from providing liquidity. Not all pools have diesel pool rewards because of the VOUCHER/SWAP.HIVE pool that I am in doesn't have any but the SPS/SWAP.HIVE pool does. However, all of them generate fees, and you are rewarded for putting your liquidity there and if people do decide to use the pool.
You can use either BeeSwap or TribalDex to see your positions and what the pools currently generate.
As you can see above, the SPS pool gives an extra 1.262% APR and you can also earn some BXT as well. It looks like the rewards will only be around for 9 days and I am not sure if these rewards will refresh again after this is done and there is an extra daily bonus of 1% right now. This means that you will earn 1% more shares in the pool in regards to the rewards being sent out.
You can also see what I will be getting each day as the image earlier was about what the entire pool was returning. Those rewards are rewarded based on your contribution to the pool versus the entire amount in the pool.
The last bonus reward you get is the liquidity provider fee for anyone using the diesel pool. When a user uses the pool, they no longer have to rely on the order book and they tend to get a better middle price. It also happens in an instant so there is an extra 0.25% charge for anyone in a rush. This amount is proportionally split between the users providing liquidity (based on their contribution versus total contribution). You can find out how much you have earned off fees on tribaldex diesel pool positions.
Conclusion
I like the decently high APRs and I will be taking advantage of it with part of my own holdings from the game. I am not sure how things will play out but I will watch and see how things unfold. I am not sure if I will take the SPS and compound it or take some profit from it though. After all, I don't know how bad the impermanent loss will be.
Are you in any of the Splinterlands liquidity pools?
Feel free to leave a comment if you read my post. If you have any questions, feel free to ask and I will do my best to answer.
