Don't make the same mistake I did by staking SPS, liquidity pool instead!
Splinterlands Investment Day 31.
A few short weeks ago I mentioned that putting money into a liquidity pool was a terrible return on investment. I mentioned that the SPS/DEC pool just wasn't worth it because you were missing out on valueable vouchers.
Guess what? Vouchers are suspended for the moment so now what's the smart play with those SPS you get every day from the airdrop or staked SPS?
Let's look at three scenario's using the 7195 SPS that I have Staked. It is worth $3321 USD. Or it is worth 291,111 DEC.
Scenario #1 : Stake the SPS
7195 SPS gets me 9.8 SPS/day as a staking reward. Not bad.
Scenario #2 : Sell the SPS and get DEC
291,111 DEC gets me (291,111/9246)= 31.5 SPS/day
... But I'm not holding SPS and I think SPS are more valuable in the long term.
Scenario #3 : Keep the SPS and match with DEC in a liquidity pool.
In this way I'm still holding my SPS but now the SPS will count as if it was DEC towards my SPS airdrop rewards. So by adding to liquidity pool instead of staking I get to keep my SPS and get 31.5 SPS/day by airdrop rather than 9.8 / day staking reward.
NOTE: With a liquidity pool the SPS and DEC levels go up and down depending on market fluctuations. Could end up with more DEC or more SPS depending on market conditions. Luckily it's not a bad thing to have either :)
Quick version: Liquidity pool for your SPS reward vs Staking your SPS reward means you are getting 3x the value from your investment.
Side note: Once vouchers come back I'll be stealing those SPS out of the liquidity pool for those valuable vouchers but until that time liquidity pool it is.
Just wish I thought about this a whole lot sooner. I wasn't thinking and have just been staking my reward daily ... silly me.... please don't make my mistake!
Where do I go for a liquidy pool? TRIBALDEX maybe there are better places but I go with what I know
And if anyone is keeping track here are the daily numbers. Mostly down for the investments but that's how things go sometimes.
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STOPCheck out the last post from @hivebuzz:
In scenario 3, you did not considered you are increasing increasing investment by 2x, If SPS go on increasing, you might end with more DEC and less SPS, looks better but it has shortcomings too. (r1s2g3)
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Your right. SPS/DEC I could end up owning more DEC if SPS goes up. The good news is having more DEC isn't a bad thing. The opposite is also true, I could end up getting more SPS if it declines. The good news is having more SPS isn't a bad thing either :)
Thanks for the info, been staking mine fault too .. though I've had DEC in a pool matched with hive. Why are the Vouchers suspended?
Vouchers were being distributed 1 Million over 1 month for the initial pre-sale. Once that time was up no more vouchers. However, once the initial pre-sale is done (Dec 12 I think) then another million will be released but at twice the rate (60,000/day I think?). Once the second million are released it will be a regular drop item but at a lower rate (20,000/day?)
thanks for that, I did read that sometime... it's starting to make sense