How not to lose your money on DEXs? How to increase your deposit safely?

Two risky options when choosing DEX with APY >1000% are to get caught in a fraudulent scheme or to add the token to a liquidity pool, which could very soon lose 99.9% of its value. Do readers have any similar experiences? What proven DEX and tokens do you use to work and make money? Which betting periods seem more profitable to you?

There are several proven DEX, such as wowswap, which have been successfully tested by hacken. Wowswap offers a high APY for stablecoins such as BUSD, USDT. I am also interested in DEXs such as Pancakeswap where you do not have to make a deposit.

What APY do you choose when adding assets to the liquidity pool? The projects themselves with their tokens look very promising. What criteria do you take into account when choosing DEX?

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2 thoughts on “How not to lose your money on DEXs? How to increase your deposit safely?”

  1. You are looking at liquidity pools the wrong way maybe?

    Does a 3-4 digit APY make sense to you? No, it’s not sustainable and if it is the token you are getting is simply going to keep dropping over time because of constant sell pressure.

    Impermanent Loss can be used to your advantage.

    Best way to think of most LP’s is as a way to long/short. Unless it’s a pair like stable/stable, or btc/eth, etc.

    Take v1 Titan for example. Let’s say you thought Titan would moon, but also that it would correct after going parabolic, ie you are short Titan. So you paired Titan/USDC when Titan was $20, expecting it to 3x to $60. As the asset price climbs, you’re gaining usdc, but losing Titan. You are in essence “selling” your Titan in the pool. Then, when it hits what you think is the top, you break your LP, sell the remaining Titan. You can do the opposite with a coin you’re long on.

    Boom, you’ve just used impermanent loss to your advantage.

    “IF” you have a good feel for the direction of the token, IL can be a powerful tool. You clearly do not have any direction whatsoever and that’s okay too. Learning moment.

    Whether it dumps or not doesn’t quite matter. It’s more about…you know it’s going to hit a parabolic top, you know you don’t want to hold it after the top, so you take the opportunity to LP when it’s low so your LP is selling it off on its way up (plus yield).

    Kind of a less risky way to short a token.

    Conversely, if you want more of a token, you’d LP when it’s high, hope that it falls in price, then break & buy when it bottoms.

    Hope that shines a light.

    I accept DM’s with boobies as form of payment. 😉

  2. If you follow people who use farming with an APY >500%, you can hardly tell they’re doing it with strategy. Most DEXs take for example the most popular ones like pancakeswap, uniswap, wowswap have coins with APY >100%, but it’s not about their deceptive shell, coin can represent very good project, on the other hand how market affects it, if coin drops in value not few tens of percent, then profit from farming will not cover your losses. I prefer to add coins like busd, bnb, usdt, ada, avax on DEX to the pool. They offer a profitable for me and high APY on stabelcoins >20-30%. Sometimes I decide to just take my assets out of the pool at any moment and exchange them for coins with higher APY to add them to the pool already. It’s a profitable business, but before you start, I advise you to get acquainted with variable losses from it


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