Cost of adding to DEC Uniswap Pool + Recap of experience

in Splinterlands2 months ago

I have been wanting to try out Uniswap and the post by Splinterlands today pushed me over the edge
I figured it would be a good introduction to uniswap and learning more about some DeFi tools as experiment for Hive/Peakd role.

Perhaps this will help other OR this will just be good recorder of experience for myself.

THE STEPS + FEES

  1. I started with 1 million DEC test from Hive-Engine wallet
  2. Transfer the 1million to spliterlands wallet = FREE
  3. Transferring 1Million DEC to Eth wallet = 1000 dec fee from splinterlands = $0.72
  4. Transferring ETH to new wallet (from different wallet) so new wallet can pay gas fees = .001626 eth FEE = $0.55
  5. Approve DEC for trade = .0021364 FEE = $0.72 (The next transaction was the actual swap so not sure why or what this transaction does)
  6. Swap 499500 dec for ETH = .0061358 ETH FEE = $2.08
    6b. I got 1.0969188 ETH for this swap
  7. Add liquidity to pool = .06440976 ETH FEE = $2.19
    7b. I added 499500 DEC and 1.09423214 ETH to pool
    Which if you check 6B you'll notice is a .002686 ETH difference (positive difference than the other half of the 499500dec i traded to get that eth for the other half of the pool

https://etherscan.io/address/0x3f5ede1b155728da517cc5e16d789fc9fc9e2ee5

TOTAL FEES

.0163399 eth = ~$5.55 + $0.72 = ~$6.27

image.png

How much is it going to cost me to REMOVE the DEC and ETH from the pool some day?
  • I suppose to remove from pool is $2?
  • The question is if i want to convert eth back to DEC then $2?
  • And then there's likely a transaction size fee to send DEC back to splinterlands wallet? Which looks like the ~$0.72?

RECAP

Ethereum sucks in many ways.

  • The fees are crazy for someone used to HIVE.
  • Having to wait minutes between each of those transactions was sucky and inconvenient.

And now I still don't really have a solid grasp of what's next.

  • How often does the pool earn
  • Where do i go to look at the results as they roll in.
  • How do i know if it's valuable enough to do to add 8 million more DEC to the pool.

Benefits outweigh the costs

  • Looks like I'd need to earn like $6-10 to make this expirement worth it.
  • However Splinterlands is saying a month of about 55k dec is worth a plot and most plots will be purchased at 7500dec ... and that presently is a value of $5.53
  • I put in 499500 dec (which came from 1 million dec split into dec/eth)
  • So that puts me at about 9 plots or about ~$50 of value
    BUT Splinterlands said this number earlier today when the pool was at $128k value now it's at $140k value which is an increase of 9.3% which maybe means every 60k dec may get a plot of land for each 30 days given the present stats??

These stats may be off but it's a decent ballpark which does still state that it is still worth while to handle those $5-10 of fees but probably not for the uniswap rewards since i now represent .54% of the pool and the fees the last 24hrs were were $24 and so my share would have been like $0.12??

I guess if nothing changes and every day is the same I'd earn back those $6 of fees in ~52 days?

BUT despite the fees the incentives from Splinterlands company are likely very worth it so the recap is I am happy with the decision. And I learned something new

WHAT'S NEXT

Check to see the status of how it does and then possibly add a bunch more but I assume doing a lot more at a time is better return because even if it's 8 million DEC the fees are likely going to be about the same.

Sort:  

yeah i'm also learning something new. kinda fun :) this site here is helping me to understand a little bit more.

Liquidity.vision

edit: now i'm wondering as a Liquid provider am i better off buying all my extra required DEC from the pool vs using hive /steem engine ??

I have been adding a similar amount to the pool yesterday. It feels weird to provide so much money to a liquidity pool and not really knowing what is going on. I put a lot of trust into the developers (as usual) and just wait and see how things are going. I am only hoping to not loose all DEC and ETH, which is a possibility I heard.

MonsterCurationFlauwy.png

monstermarket.png

Its a pool. You would end up with all DEC or all ETH if someone came in and bought up all of one of the two. Don't see how you can loose it all/both. But as always do your due diligence on everything. There is always risk, even when you get out of bed.😂

Posted using Dapplr

Haha, you are right. Now I am providing to the pool and let the rest be decided by the universe and eager traders.

Been wanting to test Uniswap too, will probably do my debut with DEC as well; thanks for this introduction!

Unifi on the dreaded Tron platform seems more convenient but something like this on Hive would be so much better.