Hi all, have been fascinated by defi and researching over the past few weeks. I struggle to learn without being “hands on” so keen to put a very small amount (i.e a couple hundred dollars) into a LP and just engage with sites/new wallets/systems etc to find my feet before hopefully funding. Wanted to see what pools you would all recommend? Obviously high exchange fees on eth I want to avoid.
Any other suggestions welcome e.g am I better of just staking on anchor to begin with?
To be clear, any replies I will not take as financial advice and will DMOR! 😉
9 thoughts on “Lowest cost of entry LP”
Stay away from liquidity pairs that involve farm tokens. Farm tokens almost always have a steady decline over time and it opens you up to a lot of impermanent loss. Sure they have high APRs and you can make money if you pull out in time, but you can also avoid pregnancy by pulling out in time and look at how that works out for people.
All LPs have the same cost of entry. What changes this cost is what network you are using. You should start with MATIC.
If you are worried I would go for pooling L1/stable or L1/BTC but clearly not token/L1, since they reward in the protocol token, it will likely get a lots of selling (down) pressure maximising your risk!
Lowest risks are stable/stable, I am on one on tezos (youves) for 30%APR for just the farming rewards (you will also accrue the trading fees but I don’t know their APR), very safe!
Try stable coins lp or btc / eth lp
Go to a chain with low gas fer like near, ftm one and so on
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You can check out the alliance block project. They have a lot of staking pools built on their LMaaS product. Doesn’t cost much to participate in the pools …
you can check defi aggregators. dot finance on moonriver and beefy finance gives juicy apy with low entry, avoid ETH network, gas fee are scary
Don’t know if you’ve heard of Bitrue’s yield farming hub. You can farm like for like coins in there, with various coins on offer. I have some LOX tokens in there.
Fees are one of the many problems in DeFi.
Spool uses buffer system to help reduce fees when staking on multiple pools