RE: 77.67% APR on SPS - SWAP.HIVE - My first steps with liquidity pools on Tribaldex (2022.10.03)

avatar

You are viewing a single comment's thread:

Its interest rate is very good nowadays. I keep increasing my position in the SWAP.HIVE:SPS pool. I just currently do not understand the concept and the risks of these liquidity pools.

splintertalk
0
0
0.000
4 comments
avatar

You can take it out relatively quick. Its all a bit risky inherently. Libertycrypto did a good overview of the pools if you ever swing by his posts. I think youre ok man. Right now all prices kind of low. Surely can go lower but i think theyre a safe spot for now.

!LUV

0
0
0.000
Reply
avatar

I checked his post about this. Now I understand it somewhat better. So liquidity pools let people exchange (swap/convert) two tokens without having to use an actual exchange, and the liquidity providers are earning rewards from the fees generated by the pool, and the fees are paid by the users, who use the pool to convert (swap) one token into another.

0
0
0.000
Reply
avatar

yes, that's how that works.

The pools shown on splinterlands.com get extra rewards in form of airdrops. That's what you can claim there.

0
0
0.000
Reply