How to use Deiselpools effectively.(taking SPT and ONEUP as example)
How to use Deiselpools effectively.(taking SPT and ONEUP as example)
I guess everyone here is aware of the deiselpools (they are liquidity pools for Hive tokens) and can be accessed at Tribaldex. May be you have used tribaldex for adding liquidity and getting rewards for adding liquidity and may be you used it for swapping the tokens also. But today in this post we will swap a token for which no direct exchange exist and if you want to do an instant transactions may be deiselpools swap are the best thing for you.
Let me sell my SPT instantly.
Ok, I am in need of money or maybe I have some surplus SPT say 1000 that I want to sell and get some another token to invest. I just want to do transaction immediately so that I can buy that token instantly or maybe I just want to get swap.hive for it then I can convert to Hive and cashout at my local currency.
If you see above screenshot, it means that if you have to sell 1000 SPT instantly then you may get 3.33 Hive.
Let see how it can happen with Deisel pool.
a.) Let's check SPT pool pair in Deisel pool
So I can see SPT has pairing with ONEUP and SPS but it lack direct pairing with swap.hive. By checking ONEUP and SPS, we see both of these have pool with swap.hive so in this example I will take ONEUP.
b.) Swapping 1000 SPT with ONEUP
So we see that 1000 SPT can be swapped for 158.07 ONEUP
c.) Swapping ONEUP for Swap.Hive
If you see, that ONEUP obtained from step b is now converted to 3.63 Swap.Hive. This is clearly more then 3.33 swap.Hive. so deisel pool helped you to get more swap.hive for same amount of SPT.
So I will always recommend to check diesel pool to if you are selling/buying instantly.
Be liquid ,still get rewarded.
Another great advantage that pool has LP (liquidity provider) rewards too, so you can earn rewards and still keep your token in liquid states for easy cashout.
If you see that, ONEUP-SPT pool has whooping 380% APR for liquidity providers.
Pool give choice for wide range of currencies.
As you already see pool is setup between a pair of currencies and a same currency have multiple pairs, so it can be swapped for multiple currencies.
Don't forget to pay attention to slippage %
If you are doing a large transaction or pool overall liquidity is too low, then pay attention to the slippage percentage. Avoid transaction if slippage is going to cause you lose much money in your transaction.
When you can use Hive-Engine/Leodex.
If you thinking now deisel pool is good place to do transaction then wait, Exchange still have it's own importance as it give you the liberty to make a "buy order" at cheap or create a "sell order" at high and enjoy your day. If price of high-low crossed that point in that day, then you order will get automatically executed.
Please feel free to upvote,comment and reblog.
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I got into the oneup:spt pool thanks to you! my first diesel pool!
Nice , Enjoy the profits. But do note that rewards APR can change ,so atleast check it weekly.
Posted Using LeoFinance Beta
Everyone looks at DeFi on Hive from the rewards point of view, but Diesel Pools serve the real purpose of making markets more efficient.
This shows a real world example of this perfectly.
Great post :)
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They are really good, I am wishing that they remove 1% deposit and withdraw fees, we might really see some nice amount of volumes in "SWAP." tokens like BTC,BCH,ETH and it overall make the Hive economy strong.
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I never really looked into the diesel pool if there wasn't a direct pool for it but I am kind of surprised that a two-way swap will net you more in returns.
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Actually, more the gap between "buy order" and "sell order" , more likely Deisel pool is going to give better return.
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Ah ok. I do know that we do lack liquidity in the normal markets so the spreads are huge.
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Excellent post! One question, to support liquidity, SPT tokens should not be staked to generate SPS airdrop, aren't they? I know question sounds stupid but I am quite noob in the concepts...
SPT token on ONEUP pool is not counted but in SPS pool might be counted twice.
"Staked" tokens are not requirement and liquid token also count for airdrop points but they should not be in "market order" in Hive-Engine.
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Nice information... pool are new to me.. will DM you on discord to discuss ....
Awesome post. Very detailed. The arbitrage opportunities that Dielselpools bring to Hive assets is ernomous.
_
@solymi does a lot of swaps from wax to hive. I love the fast transactions. I am providing liquidity in the pools as well so enjoying some sweet benefits :)
Have you checked out @beeswap?
It's a MUCH better UI for LPs.
Yeah, I know. They are also good if you have multiple account and you need to switch between them.
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