To stake or risk it for the APR?

I wouldn't say I am some die-hard brand loyalist, but I am definitely lazy as fuck and do enjoy convenience.

When it comes to DeFi Hive is not even in the top 100 for those that know it, and not even in the top 1000 list for those who know of it.

Almost everything we do on Hive is somewhat isolated which I guess is going to feel the same on any one chain. Being isolated and mainly having DeFi as a focus will feel a lot better on something like Solana or BSC than it will on Hive.

However, with projects like Polycub, the HBD bridge to BSC some simple cross-chain withdrawals via Tribaldex (Hive-engine), if you are on Hive mainly it is not too hard to take advantage of other chain options.

What if you only want to be on Hive?

Well almost all of our DeFi on Hive stems from the second layer Hive-engine protocol which via Tribaldex or your interface of choice provides access to second layer token trading.

Tribaldex is my main interface for Hive-Engine since it is the official interface and has both your token amounts, orderbooks and liquidity pools under one hood.

Even with that there are things the official interface and tools don't do.

As you can see from the above screenshot there is not a single mention of APR for any one of the pools.

When there is mention of rewards for providing liquidity it is dumped to your screen and for most will mean very little.

To effectively decide on whether you want to provide liquidity to a pool then you will want to know what the APR is.

Most will be familiar with the clear and concise APR display on liquidity pools literally anywhere else, for example Polycub:

Diesel Pools are Unique*

One difference with Diesel Pools that I have never seen anywhere is how anyone , any normal passerby can add rewards to any pool.

So that does make sense that most pools on Diesel do not have LP rewards since most "pegged" tokens that have pools like BUSD, ETH and LTC are provided by Hive-engine themselves.

Some projects will provide their own liquidity purely because having a pool with good depth or even shallow depth is better than having an orderbook and can avoid the difficulties of wide gaps allowing for swing trading... I might be wrong though, another is since these projects have single trading points there is no arbitrage benefits. Again I am spitballing here. I know nothing of trading.

A better experience

If you however still; like me, do not want to muck around on other chains hoping to find some DeFi miracle there are interfaces that can make it all feel a lot simpler when it comes to Diesel Pools on Hive-Engine.

BeeSwap

BeeSwap will show all rewards with a APR breakdown for each of the Diesel Pools available. The only gotcha is for Splinterlands liquidity pools.

Aside from providing a clean interface for almost all pool and asset transfer related tasks concerning your second layer tokens.

BeeSwap also only takes 0.25% for Hive to SWAP.HIVE conversions. If you provide HIVE to SWAP.HIVE then you also get BXT tokens as a reward for helping them have liquidity to facilitate the swaps.

If you use Splinterlands then BeeSwap was also the first to easily allow withdrawing SPS or DEC from your Splinterlands account also.

PeakMonsters

As mentioned BeeSwap does not show the APR for Splinterlands pools, those are DEC:SPS and other SPS or DEC paired pools for the most part.

Since these get ingame rewards the only place I found that shows these APR's outside of Splinterlands.

I don't think you need to be playing Splinterlands to get these rewards but I might be wrong.

Since I do play Splinterlands the SPS pools are useful for a decent APR without getting locked down by staking.

But HBD?

So with all that said, why even use any of these miscellaneous options over just getting a solid and reliable 20% on HBD?

Liquidity pools definitely have their risk, which can make even a 100% or 1000% APR worthless as token values rise and fall.

So to start if you do want to gain then there is no sense in going into a pool which has absolutely no APR.

The main benefit really is once you have chosen a pool which you feel even if the tokens themselves go up or down, you don't mind having more or less of either as the liquidity pool will always try balance it.

I think on Hive that is mainly our benefit since most tokens we do provide LP for are tokens we don't mind having more DEC or more Hive as things swing.

The main reason to risk it in a LP pool with a small passive return is for the sake of liquidity, staking HBD, or powering up Hive or LEO or Cent do give a % return over a period but when things swing it is not possible to always take advantage of better prices or even having the liquidity to quickly buy a token that dips.

So aside from keeping liquid HBD or liquid Hive you hedge with a small APR return, still a risk but that will depend how you manage your assets.

The options are there and hopefully Hive's DeFi convenience grows and with that possibly better rewards combined with the flexibility of earning however it suits you.

As a final note I think a lot of the communities can do a bit better job of incentivizing liquidity pools to avoid rampant orderbook chancers.

Posted Using LeoFinance ^Beta