Do you still earn as many farmed tokens a day as when the LP was equal to the initial $ amount if the apr/apy stays the same?
I’m most confused since I still own the same amount of LP, but instead of .00005 LP @ 25USDC-138.89DEGG worth $50, it is now .00005 LP @ 20USDC-166.67DEGG worth $40. And someone could get my amount of LP now for $10 less than I did.
I’m guessing the arbitrage has already been done? Are there any moves I can still make? Or is arbitrage made on price action quick during the moves and it’s too late?
Am I earning more, less, or the same amount of DEGG each day assuming unchanged rates?
Could my LP tokens go to $0? Would I still earn DEGG on the .00005 LP if it did go to $0?
Can my LP tokens gain value without arbitrage eating it causing impermanent loss?
Why would/should I hang on or leave in this moment or in the future? I’m wondering if my rewards will beat Impermanent loss. Is that usually the case?
I understand stable pairs are safer. Just trying to understand unstable pairs as well. Possibly even the arbitrage that caused my LP to lose value.
Looking for a better understanding
Any extra information is greatly appreciated. Thanks
If you are in a LP farm and the token you lp gets printed, you will see a new level of IL because it’ll go to 0
Rates usually change but it’s dependent on the platform and how their rates work. Each one is different. None have like constant rates.