What's up with my RobiniaSwap investment after 8 of 30 days?

in robiniaswap •  3 months ago 

Maybe you have heard about the new platform called RobiniaSwap? It is running on Binance Smart Chain and it is rewarding RBS (RobiniaSwap token) holders, and also Steem holders, and those who enter all sorts of pools in which RBS is paired with other tokens like BUSD and BNB. They also have other pools, and in the first days, it was running with some crazy APYs on all investments.

Out of pure interest, I decided to jump in and invest $1000 in the platform, that is, I added $500 worth of BNB and $500 worth of RBS tokens to the liquidity pool on PancakeSwap, and then added my LP tokens to the farm on RobiniaSwap. Have I been in luck so far?

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After 8 days, what is happening?

The first couple of days, I received more than 50 RBS tokens. That was just amazing, but at the same time, one could see that the RBS price was dropping daily, and it still is. So far, I have made more than 150 RBS tokens (but it is decreasing more and more), but considering that I bought the RBS tokens at a price of $1.5 per token, and the current price is approximately $0.35 per token, I am still in a bit of a minus. It might be, if I would remove my tokens from the liquidity pool right now, I would get out somewhere near 0, but I am not convinced. After all, if you have ever heard about impermanent loss, then you know that I would receive way less BNB in return as I withdraw my funds from the pool, and I would receive way more RBS tokens. And considering that the RBS tokens are worth way less than they originally were, I guess I would be at a loss, even though I have received lots of RBS tokens as a reward.

But, I am still only eight days into the part of my experiment, and there has got to be a limit to how much the token price can dump (at least so I hope). If it would stop, and maybe even increase in price from here, then I guess I would be in a plus at least after thirty days.

I don't really know, but I have no regrets, and I am curious to see how this will evolve in the coming weeks. At November 5th, I will return with my final update on the experiment.

If you want to learn more about RobiniaSwap, visit https://www.robiniaswap.com/ or take a look at the following article: https://www.ipaddressguide.org/what-is-robiniaswap-is-it-worth-using/

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Good luck with ur experiment!

If ur looking at something that gives a decent passive income have a look at poolins tokenized minning hashrate ,pbtc35a and peth18c not bad returns

Dear @unbiasedwriter

Finally weekend! I've found little bit of time to catch up with work and I've managed to read your previously bookmarked publication. Upvote on the way :)

but considering that I bought the RBS tokens at a price of $1.5 per token, and the current price is approximately $0.35 per token, I am still in a bit of a minus

Im sorry to hear that you actually bought some RBS tokens, instead of simply staking your steem and only minting RBS.

At November 5th, I will return with my final update on the experiment.

Why 5th novenber? And "final update" sound so serious. Hopefully you won't be pressured to finish this experiment right now. I would expect that it will take RobiniaSwap team some time to bring more demand and value to their token.

Thanks for sharing your valuable experience. Staking our tokens at the early beginning of this project was so bloody profitable. But it was also the cause for rapid price drop. I wonder where will RBS be by end of the year :)

Have a great weekend ahead,
Cheers, Piotr

Hehe... the final update is just about the fact that I wanted to do an experiment for a month to see how it will progress. Of course, the best would probably be to stay around for a long time, and I might do that, but as of know, I was just curious to see what the results would be of investing and spending $1000 on the RBS platform just after launch!

Right now the price is $0.21, and this morning it was $0.2, so it is actually the first time I have seen a price increase for the token. Let us hope it will continue and maybe start to stabilize and grow stronger and more valuable from there!

hi @unbiasedwriter

I've small question related to liquidity pools and impermanent loss.

I'm trying to wrap my head around it and based on my understanding:

  • currently price of RBS is 0.2$
  • I would add my funds to liquidity pool (pair RBS-BUSD) in relation: 1000 usd / 1000 usd

in that case I would need 5000 RBS tokens and 1000 usd worth od BUSD. Is that correct?

Now, what would happen if price of RBS would:
a) scenario one: RBS would drop down to 0.1$ (50% drop)
b) scenario two: RBS would go up to 0.4% (100% increase)

I presume that the moment I exit liquidity pool, then I would end up still with 1000usd worth of BUSD, but amount of RBS tokens would be different.
Now, my question is: how many RBS tokens would I have at the end of the day (depending on the scenario).

Enjoy your weekend buddy,
Yours, Piotr

First of all, I recommend that you check this article which has some real life examples as well, and more information: https://www.ipaddressguide.org/an-easy-to-understand-example-of-impermanent-loss/

But, If you want to spend $1000 on entering an RBS - BUSD liquiduity pool and the price of RBS is $0.2, then you will enter the pool with 2500 RBS tokens and 500 BUSD tokens (currently).

If the RBS price would drop further, you will end with many more RBS tokens than BUSD tokens, but it will not remain at the $1000 value, but it will turn into less.

If the RBS price increase, you will receive more BUSD tokens than the RBS with which you originally entered. In this situation, you will be in a plus in Dollar value, but you could have been in even more plus if you had just kept your RBS tokens instead of adding them to the liquiduity pool!

Thanks for this mindblowing and amazing reply buddy :)

What a nice and a wonderful work for everyone. You are a great person.