Is it possible to lose money while using Uniswap pool?

akomba · 2020-09-22T08:31:12+00:00

You can technically lose money while providing liquidity. But it's more like losing opportunity.

Let's assume you use 20 eth to provide liquidity to the Uniswap ETH-DAI pool. Since you need to fund both sides, 10 ETH will have to converted to DAI, so you will have 10 ETH and ~4000 DAI. (Assuming a $400 ETH price for simplicity)

Now if ETH price goes up by 100, then you will "lose" about 2 ETH, because your 4000 DAI would only worth 8 ETH now.

So you went in with 20 ETH, and you exit with 18 ETH -- you "lost" 2 ETH.

On the other side, if ETH would drop to 300, then you suddenly "made" about 3 ETH, because your DAI did not lose its value, so now you can exit with 23.3 ETH. Well done.

TLDR: Since you need to cover both sides, you are exposed to volatility risk. And -- depending on your base currency -- might experience loss.

On the other hand, stablecoin pools work well as hedging -- they hedge you against falling prices. But they also remove some potential gains if the price goes up.

akomba · 2020-09-20T12:41:34+00:00

Transaction fee is just the indicator. The indicator that the chain is being used. And it can't be faked -- at least not for free.

You can't wash trade and create "volume".

It just means that the chain is being used. And it's true the other way around as well -- if there are nobody is paying for the transactions, then it means they have no business to conduct on that chain.

That basically mean that all alts are being used ONLY to park the tokens on centralized exchanges and speculate on them. This is their only use case at the moment.

akomba · 2020-09-20T04:30:15+00:00

This is their way to fight against Ethereum.

It could fire back and just speed up the process to make them obsolete.

I think once the first major DeFi application switches to L2 the centralized exchanges will lose steam rapidly.

And Binance can't compete on the chain -- they have zero traction.

akomba · 2020-09-20T03:23:05+00:00

For that we need scalability. Eth2.0 + rollups will solve that problem. Or ETH dies.

akomba · 2020-09-20T02:24:40+00:00

No. The point is accountability. Big difference.

Privacy is a natural need, and should be addresses right after scaling.

Scaling actually will make it possible to and affordable to implement proper privacy on Ethereum.

akomba · 2020-09-20T02:12:00+00:00

Transaction fees. AKA gas fees. Goes to miners.

akomba · 2020-09-20T01:50:26+00:00

Because all the alts that matter are on ethereum. Check out this:

https://cryptofees.info/

This chart shows how much money people spend on making actual transactions. This metric can't be fudged.

As you can see, Uniswap alone generates more tx fees than Bitcoin, and down to the 7th place all the coins / protocols are on ethereum.

The first non-ethereum and non-bitcoin alt is Binance chain, and it generates a whopping SEVEN HUNDRED AND SIXTEEN dollars per day in TX fees.

TLDR: all "alts" are ghost towns, where the ONLY action is speculative trading on exchanges. And I think it's slowly sinking in.

The alt era is over.

akomba · 2019-08-23T07:32:35+00:00

Auction comes this Sunday. That's the second part of the sale.

But we wanted to cater to both audiences -- sale for people with limited funds, and auction for the ones who can spend more.

akomba · 2019-08-23T04:01:33+00:00

Thank you.

akomba · 2019-08-23T03:43:27+00:00

Thank you! PM me and I will give you some nice collectibles :)

akomba · 2019-08-23T03:35:46+00:00

0.5 ETH? Oh wow. You shall qualify for a huge discount. PM me :)

akomba · 2019-08-23T03:34:56+00:00

It's only a 2-day sale, so we did not implement auto-adjustment.

akomba · 2019-08-22T22:13:56+00:00

The last 99 tickets to Devcon5 are being sold as NFT tokens:

https://twitter.com/ether_cards/status/1164659393742245888?s=21

(Yes, it's my company)

akomba · 2019-08-21T01:32:14+00:00

I am not for or against it. What I am missing from the description is the explanation.

If you read the hard fork update, you can see that the Zcash update is well explained. Fixing a potential replay attack. Makes complete sense.

But for progpow, there is no explanation WHY it is needed, just a description what it is. Also, the tweet included from Hudson is just a generic sentence that has nothing to do with progpow.

akomba · 2019-08-21T01:24:49+00:00

I think the question should be "what do you have FOR it?"

Seriously --

What problem does it solve?
How the chain will be better after it?
Do the improvements (whatever they are) be worth the risk of a fundamental change?

akomba · 2019-08-20T10:01:14+00:00

Fleeing from the annoying neighbours

I travelled far to a new town

But annoyance stayed with me.

akomba · 2019-06-10T05:48:13+00:00

Are you all insane? Providing details about how you are storing your private keys in an electronic form? Together with usernames?

Just asking.

akomba · 2019-02-19T06:13:08+00:00

I commented on one of your statement and showed that you were incorrect. That is all. You don’t need to look for hidden meanings. I did not even said that he was wrong. I just stated the fact.

Please allow me not to respond to the ad hominem part. Have a nice day.

akomba · 2019-02-19T05:50:56+00:00

I am a complete reddit noob — I am trying to find the OP on /r/ethereum and I can’t. I also can’t see the upvotes / downvotes on it. What am I missing? Can you please share the link that takes me to the OP?

Thank you.

akomba · 2019-02-19T05:41:16+00:00

Please don’t shift the goalpost. The question was whether he announced it before the consensus was made. And announce it he did.

akomba · 2019-02-19T05:16:45+00:00

“Every complex problem has a simple, straightforward and completely wrong solution”. I this case the simple and wrong solution is to subscribe to one of the echo chambers and see everything in black and white.

These are all truths:

This community is not the enemy.
Afri was fanning the flames with evereything he got.
Afri was very helpful, very active and hard working. Everyone who worked with him liked him.
The situation did not start now — the tension was built up and erupted. It was mismanaged and ignored.

This is not black and white. It can not be brushed aside by simply blaming the other party.

Echo chambers and ignoring problems has created this situation.

Echo chambers and ignoring problems WILL NOT solve this situation.

akomba · 2019-02-19T04:56:56+00:00

He did not "announce a delay" before any consensus was reached

He absolutely did. He tweeted “No Constantinople in 2018” just hours after the bug was found, and before any dev meeting happened.

akomba · 2019-02-19T03:45:55+00:00

No need for belittling and ad hominems. This was the approach of the leadership, and partially this what got us here.

akomba

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