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).
Balancer has lot of sucess for staking contracts in which some DAO can use staking contracts liquidity in 80/20 pools as liquidity pool.
exemple
-Radiant Capital
-Paraswap
-Aave
- YES 80/20
- NON 50/50
0 voters