80/20 pools rather than 50/50 pool with ADA

Proposals
1

Dear Minswap users/liquidity provider

In order to reduce impermanent loss for liquidity provider, the crypto industry has developped several options
-50/50 pools with concentrated liquidity (you need to rebalance you position, very boring…)
-80/20 pools
-wide index pools ( from 3 to 8 token in the pools)

I like providing liquidity and earning MIN token but I don’t like impermanent loss.
In a strong bull market of token, all token will grow faster than ADA= > so I/we will lose money versus situation in which I have kept my token.

I would propose a 80/20 pool model, rather 50/50, for several reasons:
-less impermanent loss for Liquity Provider
-less capital ADA required for liquity

Please read original Balancer (which is used on Cardano Milkomeda on Blueshift DEX).

8 Likes
2

I agree that there should be an option to choose between them and the dex can automatically choose a pool to swap from or something of that nature.

2 Likes
3

This will give more meaning and rewarding to the concept of proof of holding!

2 Likes
4

Blueshift (on Milkomeda L2) is already providing
-80/20 pool for BLUES/ADA
-index pools

https://blueshift.fi/

1 Like
5

how does the math work out for 3 , 4, 5 tokens combination where there is a 0.5 probabilty of each going down by 30% in price. So the probability of 3 bad tokens will be 0.5x0.5x0.5 =0.125 probability of all going -30% at the same time?

and why not 90/10 being provided as well as a high/medium/low impermanent loss options?

1 Like
6

I have no idea of math for 3,4,5 tokens

80/20 is the standard used by Balancer and Blueshift, you should have a look on the Balancer liquidity, best ratio between liquidity and impermanent loss management

1 Like
7

is there a way to submit a proposal or a snapshot?

1 Like