Since my first few days on chain, I've engaged in liquidity pools (kindly introduced to me by @ganjafarmer in his introductory course). Important knowledge imparted on me was the risk of impermanent loss, as well as the crappiness of some of the tokens on the chain, particularly of projects with poor long-term outlooks. Understanding these risks, I partook in some liquidity pools, peaking my activity somewhere in early-mid 2024. Some of these pools results in net losses; others in net gains.
AN important factor that I had not considered early on is the value of my time in relation to what I'm doing with these liquidity pools. Some of them are worth pennies, and taking the time to update them on a daily basis is quite literally not worth the time it takes to do so.
A few months back, I slightly cut own on some of the liquidity pools that were simply a total waste for me. In the ensuing 1-2 weeks, I'll be further cutting down on liquidity pools which I actually consider to be decent ones. These are the ones that have sustained their value for a long time and continue to deliver; however, I'd rather simplify my activity here and stick simply with curation rewards from the associated 2nd layer tokens.
Here, I'll list a few of the pools which people may be interested in considering:
SWAP.HIVE:PIMP
This is coming from one of the longest-surviving tribes on Hive, PIMP, run by the esteemed @enginewitty. Here's the original paper on PIMP plus its most recent iteration, Version 4.0. He continues to develop it, and it's uniquely backed by some physical assets, and in the near future, also by Bitcoin reserves.
I'm not actually exiting the tribe; in fact, I'll be converting all of my PIMP into a staked version so that I can be among the top 115 stakers and start receiving some more benefits of holding onto to this token in its staked version.
MEME:PEPE/FUN/LOLZ
The LOLZ token is built as a meme / fun token which happens to give out dividends of various other 2nd layer tokens on a daily basis, provided you're in the top 125 stakers. Here's an example.
Staking some of those 2nd layer tokens to lolz community-based accounts gives out even more LOLZ tokens. Not to mention, some of the top stakers also get monthly dividends of HBD - that was definitely an uncommon feature which prompted me to increase my LOLZ stake.
I used liquidity pools to increase the amount of LOLZ token coming my way, as well as the amount of other 2nd layer tokens coming my way so that I could eventually stake them and earn more LOLZ.
Soon, I'll be exiting those liquidity pools and simply staking them so that I could earn more staked LOLZ directly. Some day, in the distant future, I'll likely end up unstaking and trading in the LOLZ for HIVE as I simplify further, but that's not happening very soon.
SWAP.HIVE:BXT
As far as I recall, BXT is one of the tokens underlying Hive Engine, and staking it produces more SWAP.HIVE as dividends. I've kept this pool going in order to increase my BXT holdings, but price fluctuations in BXT seem to have limited the growth I've actually achieved. Nevertheless, I do have more BXT than when I began, and when the price of BXT is a bit lower (thus increasing the amount I have in the liquidity pool), I'll pull out and stake it.
This way, I'll still be contributing to Hive Engine in my own little way, and earn a bit of SWAP.HIVE in return. In the long run / distant future, as I simplify further, this will also be something I'll unstake and sell.
CENT:SWAP.BTC / SWAP.HBD / LEO / POB
CENT is a tribe that's been around HIVE for a long time, but it's had quite a bit of trouble holding peg to its intended value. It's encouraging that the tribe remains active and its leadership does continue trying to improve the token's utility and finding ways to hold its peg.
That said, I'm not quite involved enough in that tribe to look beyond the value of its liquidity pools. The APR is quite good, and these liquidity pools happen to do something which a lot of liquidity pools fail to do: keep things simple. They don't reward you with a trillion useless tokens to pump up their perceived APR. Their rewards consist of 2-3 tokens, with CENT and the other attached token being the primary rewards. I find this to be a strong feature.
My primary goal is to increase my CENT:SWAP.BTC holdings over time. That's the one I'll keep longer, while the rest are going to gradually tapered off. CENT:LEO will probably be the 2nd-to-last, as I consider the $LEO token one of Hive's best, given the strength and size of community, plus the fact that the founders of InLeo, no matter your opinion of them, do continuously work very hard to push Hive forward.
WINE:WINEX
Honestly, I don't have much to say about this one. These tokens appeared in my account somehow, possibly as rewards from some of other liquidity pool, and I just dropped them into this one. I figured I'd let them earn something since they were otherwise just sitting around doing nothing.
That said, these are such tiny amounts that I'm not even sure whether I should continue adding to this pool. The best escape route is converting WINEX --> WINE, then swapping WINE to SWAP.HIVE. My total holdings, when undergoing that conversion, will probably earn me a fraction of 1 SWAP.HIVE lol!
ZING:SWAP.HIVE
This pool is a result of the creation of the HOLOZING game with its attached ZING token. This will probably be one of the later pools which I liquidate because it has a pretty good APR, and the token's value has held up pretty well recently. Its creator has a long history on HIVE and, no matter your opinion of him, is not likely to pull this out from under everyone as a trick.
I have some other liquidity pools which I'll keep for a while because I actually make use of the tokens (i.e. CCD, SIM, LEN/LENM). Some of my liquidated pools funds will likely go towards those pools.
Posted Using InLeo Alpha