My RobiniaSwap investment - One month later!

in hive-175254 •  8 months ago  (edited)

Exactly one month ago, I wrote a little article here presenting my $1000 investment in RobiniaSwap. It was very simple, and I had great hopes for it, considering that RobiniaSwap opened with some fantastic APRs on their products, especially if you added liquituity to the BNB/RBS or to the BNB/BUSD pools. And that is what I did. How did it go?

My thoughts behind investing was simple...

  • RobiniaSwap sounds great.
  • RobiniaSwap currently runs with awesome interest on their pools and farms.
  • I was curious to test it myself!

What did I do?

I add $500 worth of BNB and $500 worth of RBS into the BNB/RBS liquidity pool on PancakeSwap. I harvested my rewards at least weakly, added them to the RBS pool, meaning that I received interest with my earned RBS tokens as well.

robinia swap experiement october 5.jpg

This was my original investment as I added my funds to the liquidity pool.

Now, one month later it was time to see what would happen if I received my tokens. Well, I wasn't surprised because I knew what to expect, but it wasn't the best thing I have seen.


Above you can see what happened.

In one month my original investment of 1.2 BNB and 344 RBS (that was added to the liquidity pool) turned into 1120 RBS and 0.38 BNB tokens.

That might not sound so bad, but the reality is that when I invested the 1.2 BNB was worth $500 and the 344 RBS was worth $500. As I removed the funds from the liquidity pool the 1120 RBS was worth $225 and so was the 0.38 BNB. In other words, $1000 turned into $450.

I earned almost 700 RBS with my investment in the period, and the value of those was $136, meaning that in this period my final result was making $1000 into $586.

Does that make RobiniaSwap bad?

Not at all! In fact, if I would have kept my investment, I would probably only go plus from here. After all, I did something very risky... I invested money in a platform just after launch. That is often disastrous, and it was here. Not only because it is risky, but due to the big RBS rewards the first week, people dumped those tokens like crazy, making the prices drop a lot. So, if I had waited one more week with my investment, I wouldn't have been able to buy only 344 RBS tokens for $500, but instead, I could have bought at least 1000 RBS and probably more, and suddenly the math would have looked much nicer today.

Many people say that RBS is in a beautiful buy-zone now, meaning that the price is very likely to increase from here. So, I guess I might have watched the bottom selling my tokens, but for me, this was first of all an experiment, and I wanted to share my experience right here.

But no matter what, this is a useful lesson on the dangers of investing in general and also of impermanent loss that can easily happen when you invest money in liquidity pools.

So, there is no bitterness from my side, and I am curious to see the further developments of RobiniaSwap in the coming weeks and months, and years. I believe the platform has great potential :)

No matter what, I promised to return with the results of my one-month experiment, so here you have them. If you want to read even more about it, take a look at this article.

Do you have any comments or questions related to this? I would love to hear from you!

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That is the risk of the impermanent losses generated in liquidity funds, it is one of the few risks that I observe in this type of investment.

Thank you very much @unbiasedwriter for sharing your investment experience with us, greetings.

I agree that in the initial phase prophet was one of the reason why people is dump token in the market and it has caused the price drop drastically. I can see that you have gone through quite a big loss but as you say that holding it for long term would possibly result in great returns. We do not know how things will be working in future and that's why we do plan investment but yes I just said that if you have waited for some more time then this could have been avoided. Thanks for sharing your investment experience with us

Thanks for sharing. I do agree with you, the start was a high risk adventure, and I have a feeling that my entire investment would have went into a plus if I had sticked around for a couple of more months. I am curious to see what kind of effect the IFO will have on the platform :)

Hi @unbiasedwriter
This for many may sound like a real disaster, but I think the great detail, as you point out here, is that the.invwrsion was made in full launch, where commonly prices are very high and you run this risk of loss, I do not even want to think what those who bought when RBS was at 40$ will have lost.
I would prefer to enter first with another token in Pool and not in farm precisely, because of this great risk that it represents. But, thank you very much for showing these results.
Have a nice weekend.

I totally agree, entering a pool (not the RBS pool) would have been a less risk adventure, but I like adventures, so I took a big risk, and I had to pay the price of it. But, I also see a bright future for the platform if they can manage to run interesting IFOs (like Yanabu) and bring more investors around!

Thanks for sharing your experience buddy. Even with the impermanent loss that has been experienced as a result of investing into the liquidity pool, I still have faith that this project has some really great potentials. I guess we only need to give it a little more time to recover from the massive dump that was experienced in the first few days of launch.

Stay safe buddy

Greetings dear @unbiasedwriter, thanks for sharing your results in robinia, I think like others that could affect the massive sale of tokens that may have existed at some point, we will remain expectant of the progress of robinia.

See you later, have a great weekend.

Greetings @ unbiased writer
Thank you for sharing your experience of your first month in RobiniaSwap project, no doubt this information is very important for all investors, which will help them to make better decisions. Particularly I also invested and I am hopeful like you that this DeFi will be able to improve.

Thank you very much for sharing your publication.

I believe one of the thing that really affected the project was the rapid profit rate when it was first at launch. This affected the quality at the long run which make the reward system to be games and tampered with

I still believe there is still great thing for the project

Hello @unbiasedwritier!

I can say that I was lucky that I didn't lose anything, but also didn't make anything, I only covered my gas fees and little more extras. I invested in Bsteem which was really good at first yet the people who invested and sold as soon as it was enough for them to make profit was a great reason for the price drop and that's why it kept going down day after day. I would say it would have been more successful if people believed more and kept their funds or sold but one by one not all at once.

Thanks for sharing your experience.

The bSteem thing was actually a good thing, and it still is... no danger of real loss, but you have the chance to make a little bit. Of course, you can do so also by powering up on Steemit and voting, but this is a different way of using your Steem tokens!

I'm glad you shared your experience here this could be a good lesson for all i also made such investment with little capital my advice to those willing to provide liquidity on pool is, its best to provide RBS-BUSD this would reduce lost due to price volatility in both pairs using a stable coin will be good.

I believe this is a very good example of an impermanent loss. This happens a lot if one of the tokens changes its value drastically to the other token: As far as I can see BNB gained some percent and RBS lost some percent. That is why the ratios were disrupted like this.

However this does not make any of these coins a abd investment. These are just the risks of a liquidity pool :)

Great article @unbiasedwriter, I hope to read more about RBS soon!

Yes, this is an example of impermanent loss, and not a "good" example. But, that is the way people learn, and it is the way you win and lose. If RBS had kept the price, it would have been a giant win and I would be here with $2000 today... so in a world of money, you will win some and lose some! That is the way of the game!

Every investment is a risk just calm down it might later turn out great.