As this position enters its 3rd day, I continue to be optimistic. You wouldn’t have to do a test position in an ideal world. The liquidity pair would perform for you like your research indicated. With that not being the case, I continue to watch and evaluate.
What has gone right the past 3 days?
- While the gains have dropped over the first two days, the APR is still at 172%. There is nothing wrong with that. Where will it be in 4 days? I will be keeping track…
- I closed a position since I had one that was not doing well (about 20%). I rolled these funds into the MAGIC/ETH position. Ideally, I would have waited longer to add funds to a test position. It must mean I feel confident it is doing well. These additional funds will skew the daily numbers while evaluating the test position. Since APR is the most crucial factor, I will focus on this.
What concerns me?
- The impermanent loss is almost as big as the earnings. I don’t like this. I believe this will even out, but experience is a much better teacher than posing a question to ChatGPT.
- Along with the impermanent loss, the Liquidity ratio has changed. I prefer MAGIC be greater than 20%. If MAGIC gets closer to 25% or higher, will it lower the impermanent loss? I will continue to monitor.
While I wait for the test period to run out, I will continue to look for another liquidity pool position. Will I find another one on Arbitrum One or Polygon, or must I go to a different network? Whatever I do, having a guru to check in with is still reassuring.
