The Liquidity Pool Is Dry

After patting myself on the back yesterday for buying Ethereum at 1% below its going rate, (It ended up going down further) I am greeted with my PENDLE/USDT pair moving out of range. When I meet with the guru today, I will figure out what my next move needs to be.

When your position is out of range, you aren’t generating any earnings. I am hoping the guru can let me know if it is better to “rebalance” or to get our of the position entirely.
As this pair gets further out of balance, my loss increases and my impermanent loss grows. I really hope there is a good solution to resolve this issue. Without any USDT, there is nothing my position can do but just sit there.

Am I frustrated that this position dried up? Absolutely I am. Prior to this position drying up, PENDLE/USDT was on track to make 64% APR. Being “out of range” won’t allow this position to stay on track to maintain that goal. I am hoping a few minutes with the guru will allow to again point in the right direction.

While disappointed, I have perspective. I have seen one of my Forex algo bots attempt to destroy a sizeable account. Losses are part of investing. When investing in this space, you have to know there are more potholes in the road than you will find on the “CD” road. I don’t love the risks, but I accept them. Lessons aren’t free. If I have to go through this identical experience again, it wasn’t a lesson. It was a nudge/push that maybe I am not meant to continue traveling this road.

About Andy G

Semi-retired dad of 4 biological kids and many others kids. Eyes on eternity while enjoying the blessings this life has available.
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1 Response to The Liquidity Pool Is Dry

  1. Pingback: Understanding Liquidity Pool Management: Advice from My Guru - Algorithmic Trading 4UAlgorithmic Trading 4U

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