Thank you for the update.
If the price of LEO continues to decline, what impact does it have on LBI, if any?
!PIMP
!ALIVE
!SLOTHBUZZ
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LBI's value would drop, by less than LEO (assuming you mean LEO dropping against HIVE) If LEO and HIVE both keep going down, so will our $$$ value, but the HIVE and LEO values won't change.
It's a little confusing, but if LEO goes down against HIVE, then our value per token measured in HIVE will go down, but in LEO it'll go up.
Does any of that make sense?
assuming you mean LEO dropping against HIVE
Well, swap.hive
but the HIVE and LEO values won't change.
You mean number of tokens held won't change? Their valuation in terms of US$ should be lower, correct?
It's somewhat confusing.
When you say..
LEO goes down against HIVE
Are you comparing to Hive in US$ ?
I value project tokens and earnings on Hive blockchain based on Hive/Swap.Hive and take notice of any inflationary aspect of said token. I accumulate/spend Hive/Swap.Hive and I don't usually concern myself of the price based on US$
My word salad was a mess. Here are some numbers...
1 LEO currently is 0.44 HIVE (swap.hive but same same).
1 LBI = 1.66 HIVE
Assume LEO crashes by 20%, everything else stays same...
Then 1 LEO = 0.35 HIVE
1 LBI = 1.493 HIVE.
LEO drops 20%, LBI drops 10%.
Now that is straight forward. !LOLZ
LEO looks more volatile and heading in the opposite direction of LBI which create an impermanent loss for LEO:LBI Liquidity Pool pair.
If true, it is better to keep LEO in your wallet and not the pool pair. Is that fair to say?
I do appreciate you taking the time to share. My motto is to Learn Before You Earn anything. Means I often ask many questions.
!ALIVE
!SLOTHBUZZ
Generally fair to say, but it can be a bit more nuanced. If you want more LEO, the prices moving in that way may be ok for you. The reality of a pool position is that you are effectively selling the token that increases in value for more of the token that doesn't. Some traders use this and add to pools, then exit and use pooling as part of their trading strategy.
Anyway, the real thought for most people is "do I like both tokens in this pool?" and are the LP incentives worth the higher risk for pooling?
An individual choice.
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