Row 9336

Row ID: 9336 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 9336 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

I have begun posting an ongoing series to illustrate the impact of Impermanent loss, and the impact of yield farm for liquidity pools. [Week 0 Update](https://old.reddit.com/r/ethtrader/comments/1clhb2e/sushicom_donuteth_liquidity_tvl_grows_to_nearly/). [Week 1 Update](https://old.reddit.com/r/ethtrader/comments/1cqu14s/diving_into_the_donut_pool_an_insight_to/)

Currently: TVL in [Sushi.com](https://Sushi.com) is $88.95k

* 10.3171 ETH * 5038290 DONUT

Trading Volume in last 24 hours = **$4.69k**

Trading Volume in last 7 days = **$16.68k**

**If you are thinking of joining any liquidity pool,** here's some important information to consider first.First thing you need to do provide a pair of assets, in this case, DONUT + ETH in order to allow others to trade the assets. While you do get transaction fees, the prices of the relative assets can also fluctuate. When this happens with higher swings, the transaction fees you receive don't usually make up more than the value of the assets that have now been re-balanced. It's not necessarily a loss per say, but you could have had a higher value portfolio if you simply held your assets.

Here are two other sources I find helpful for those wanting to understand a bit more on how and why liquidity positions change.

[Impermanent loss, text explanation](https://www.reddit.com/r/CryptoCurrency/comments/12dducc/impermanent_loss_simple_explanation_liquidity)

Sometimes a video and pictures make understanding easier.

[Binance Academy, video explanation](https://academy.binance.com/en/articles/impermanent-loss-explained)

​

**Before anyone decides to provide liquidity**, please become familiar with the risks, and understanding of how impermanent loss occurs - **it's very different to 'Staking' and stake rewards.**

# Lets see the ongoing results!

Now, I'm sure you're curious to see it in action, so, lets check back in with my liquidity position.

I currently hold the 2nd largest position on the [Sushi.com](https://Sushi.com) liquidity pool, with an 11.64% of the pool's position at its current price range.

​

||ETH|DONUT| |:-|:-|:-| |Initial Liquidity Provided|1.4231|383,400| |Liquidity Position Week 1|1.32821|406855| |Liquidity Position Week 2|**1.10346**|**465943**|

In the last 7 days ETH is has moved + 5.0%

In the last 7 days DONUT has moved -6.2%

As you can see, this is reflected in the change in balance of my assets on the table above, even less ETH, and more DONUT than the previous week.

|Rewards|ETH (Fees)|DONUT (Fees)|DONUT (Yield Farm)| |:-|:-|:-|:-| |Last 7 days|0.0016247|1035.57|2420.34| |**Cumulative Total (2 weeks)**|**0.0049705**|**2083.197**|**9051.8781**|

# Summary

The last week has seen an increase in trading volume, largely thanks to Distribution that occurred. Overall, more sellers than buyers, hence the drop in price. Unlike the previous week, which saw a +41.79 profit ahead of Impermanent loss, this week Impermanent Loss outweighed the incentives.

**In fiat value this is the result.**

* Impermanent Loss Experienced = $-55.00 * Last 7 days Fees Revenue + Yield Farm Generated = $44.27

For the last week, **this has resulted in a loss**, despite an increase in trading volume change in ETH/DONUT ratio was significant enough to overwhelm the yield incentives by **$-10.73.**

While the last week has experienced a negative result, the positive result from the previous week was greater. From an educational perspective, it was good to get a positive and negative result in the first two updates; but I would prefer more positive weeks going forward :D

FieldValue
text I have begun posting an ongoing series to illustrate the impact of Impermanent loss, and the impact of yield farm for liquidity pools. [Week 0 Update](https://old.reddit.com/r/ethtrader/comments/1clhb2e/sushicom_donuteth_liquidity_tvl_grows_to_nearly/). [Week 1 Update](https://old.reddit.com/r/ethtrader/comments/1cqu14s/diving_into_the_donut_pool_an_insight_to/) Currently: TVL in [Sushi.com](https://Sushi.com) is $88.95k * 10.3171 ETH * 5038290 DONUT Trading Volume in last 24 hours =…
label r/ethtrader
dataType post
communityName r/ethtrader
datetime 2024-05-20
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Raw Record

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  "text": "I have begun posting an ongoing series to illustrate the impact of Impermanent loss, and the impact of yield farm for liquidity pools.  \n [Week 0 Update](https://old.reddit.com/r/ethtrader/comments/1clhb2e/sushicom_donuteth_liquidity_tvl_grows_to_nearly/).  \n [Week 1 Update](https://old.reddit.com/r/ethtrader/comments/1cqu14s/diving_into_the_donut_pool_an_insight_to/)\n\nCurrently: TVL in [Sushi.com](https://Sushi.com) is $88.95k \n\n*  10.3171 ETH\n*  5038290 DONUT\n\nTrading Volume in last 24 hours =  **$4.69k**  \n\nTrading Volume in last 7 days =  **$16.68k**  \n\n**If you are thinking of joining any liquidity pool,** here's some important information to consider first.First thing you need to do provide a pair of assets, in this case, DONUT + ETH in order to allow others to trade the assets. While you do get transaction fees, the prices of the relative assets can also fluctuate. When this happens with higher swings, the transaction fees you receive don't usually make up more than the value of the assets that have now been re-balanced. It's not necessarily a loss per say, but you could have had a higher value portfolio if you simply held your assets.\n\nHere are two other sources I find helpful for those wanting to understand a bit more on how and why liquidity positions change.\n\n[Impermanent loss, text explanation](https://www.reddit.com/r/CryptoCurrency/comments/12dducc/impermanent_loss_simple_explanation_liquidity)\n\nSometimes a video and pictures make understanding easier.\n\n[Binance Academy, video explanation](https://academy.binance.com/en/articles/impermanent-loss-explained)\n\n​\n\n**Before anyone decides to provide liquidity**, please become familiar with the risks, and understanding of how impermanent loss occurs - **it's very different to 'Staking' and stake rewards.**\n\n# Lets see the ongoing results!\n\nNow, I'm sure you're curious to see it in action, so, lets check back in with my liquidity position.\n\nI currently hold the 2nd largest position on the [Sushi.com](https://Sushi.com) liquidity pool, with an 11.64% of the pool's position at its current price range.\n\n​\n\n||ETH|DONUT|\n|:-|:-|:-|\n|Initial Liquidity Provided|1.4231|383,400|\n|Liquidity Position Week 1|1.32821|406855|\n|Liquidity Position Week 2|**1.10346**|**465943**|\n\nIn the last 7 days ETH is has moved + 5.0%\n\nIn the last 7 days DONUT has moved  -6.2%\n\nAs you can see, this is reflected in the change in balance of my assets on the table above, even less ETH, and more DONUT than the previous week.\n\n|Rewards|ETH (Fees)|DONUT (Fees)|DONUT (Yield Farm)|\n|:-|:-|:-|:-|\n|Last 7 days|0.0016247|1035.57|2420.34|\n|**Cumulative Total      (2 weeks)**|**0.0049705**|**2083.197**|**9051.8781**|\n\n# Summary\n\nThe last week has seen an increase in trading volume, largely thanks to Distribution that occurred.  \nOverall, more sellers than buyers, hence the drop in price.  \nUnlike the previous week, which saw a +41.79 profit ahead of Impermanent loss, this week Impermanent Loss outweighed the incentives.\n\n**In fiat value this is the result.**\n\n* Impermanent Loss Experienced = $-55.00\n* Last 7 days Fees Revenue + Yield Farm Generated = $44.27\n\nFor the last week, **this has resulted in a loss**, despite an increase in trading volume change in ETH/DONUT ratio was significant enough to overwhelm the yield incentives by **$-10.73.**\n\nWhile the last week has experienced a negative result, the positive result from the previous week was greater. From an educational perspective, it was good to get a positive and negative result in the first two updates; but I would prefer more positive weeks going forward :D",
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