Notes from a Novice Trader: From One Diesel Pool to Another
In mid-October 2021 I took the plunge into the SWAP.HIVE:DEC liquidity pool for my first attempt at earning passive income using diesel pools. I figured out the mechanics of adding to diesel pools, and I had been making small additions to this one. It's mid-November 2021, and after reviewing my experiences with the SWAP.HIVE:DEC pool I decided it was time to switch to another diesel pool. I'm still a novice trader, and these are my notes.
Screen captures came from TribalDex and were edited in MS Paint for clarity.
The Expectations I Had
One reason I took the plunge into the diesel pool was to earn rewards. ("Well, duh!")
My contributions to the SWAP.HIVE:DEC diesel pool were modest in comparison to those made by most people participating in it, but I was able to add to my share of the pool regularly.
I was expecting to see daily (or at least) periodic drips of SWAP.HIVE (the base token)and DEC )the quote token). After all, that's what I added to the diesel pool.
The Discoveries I Made
It turns out that when a pool offers rewards, the rewards aren't necessarily those of the base token or the quote token. The could be one, or the other, or even neither.
Neither?
I was shocked to discover that, but I checked for myself:
4 other tokens were offered as rewards:
- BEE -- By the time I made my first additions to the SWAP.HIVE:DEC diesel pool, I had already been earning BEE from posts. When I see BEE in my wallet, this is waht I was thinking was happening.
- STARBITS -- I don't play Rising Star (or any other games, at least for now), so I thought I must have commented on a post where one of the game tags was used.
- LVL -- As with WAIV, the LVL came to me mysteriously. I had no idea what LVL was or how I could have earned any. As with the WAIV I received, I sold it at LeoDex.
- WINE -- A few weeks ago there was trouble with the project, so WINE was effectively suspended and replaced with WINEX. I sold the WINE as soon as I noticed it in my wallet.
No SWAP.HIVE. No DEC.
Free money is free money, so I can't complain about that. Still, I had other expectations, and they were not met. I psyched myself out, and that's not what you want to have happen if you're engaged in trading of any kind.
Reviewing LP Rewards
First, not every diesel pool offers LP Rewards. Why some pools offer LP rewards while others don't, I have no idea at this time and I don't know enough about them to even attempt a guess.
With that detail in mind, I reviewed the LP rewards for the diesel pools which offered them. No longer concerned with the base token or quote token being among the rewards, I saw that some rewarded 2 tokens, and others rewarded 3 or 4.
Then I discovered the SWAP.HIVE.PIZZA pool.
The Winner (for Me): SWAP.HIVE:PIZZA
At the time I discovered SWAP.HIVE:PIZZA pool, these were the LP rewards offered:
10 tokens were offered as rewards!
I knew that Team PIZZA was a big player behind the scenes in establishing partnerships with other projects (especially with Rising Star and even Splinterlands), but I didn't realize the partnerships were that extensive.
What did I find?
- Base and Quote Tokens -- SWAP.HIVE and PIZZA are offered as rewards in the SWAP.HIVE:PIZZA diesel pool, so that was a good sign;
- High-Profile Tokens -- LEO for LeoFinance and CTP for ClickTrackProfit;
- Up-and-Coming Tokens -- ALIVE for the We Are Alive tribe;
- Gaming Tokens -- SIM for dCity, APE for APE Mining Club, and STARBITS for Rising Star;
- Engagement Tokens -- (besides PIZZA) WINE; and
- High-Value Token -- UTOPIS.
With a good mix of tokens like that, I thought it was too good to pass up. So I decided to remove liquidity from the SWAP.HIVE:DEC diesel pool, sell the DEC tokens, buy PIZZA tokens, and add liquidity to the SWAP.HIVE:PIZZA diesel pool.
What Happened Since Then
In my wallet I didn't see extra SWAP.HIVE or PIZZA tokens, which I thought was weird. Then again, they may be added to my additions in the diesel pool; I need to find out what happened with those rewards.
However, I had been receiving rewards from the other 8 tokens. Perhaps the SWAP.HIVE and PIZZA LP rewards were transformed into LP rewards for the other tokens; I can't say.
Other Observations
Pool Activity Is Fluid
Just as people add and remove money into a diesel pool, the tokens used for rewards can be added and removed. I only discovered this within the last day or two. This is what the LP rewards for SWAP.HIVE:PIZZA look like as of post time:
Combining the last 2 images, this is how the LP rewards picture changed for me:
- Present
- SWAP.HIVE
- UTOPIS
- ALIVE
- APE
- Removed
- PIZZA
- LEO
- SIM
- CTP
- STARBITS
- WINE
- Added
- VIBES
- ONEUP
- BRO
How these rewards are assigned to the pools is a mystery to me. Over time I should discover why this is the case. For now, I'm happy to earn whatever LP rewards I receive.
My Notes
BRO and UTOPIS Are Worth Stacking
Once I cleared out my wallet to begin to add to liquidity pools, I discovered I also had enough SWAP.HIVE to buy BRO. Besides the LP rewards from the pool, I use SWAP.HIVE to buy more BRO. I'm just starting, so the amounts are low. Six months from now, who knows how much I'll have. Whether it's from LP rewards or outright purchases at the DEX, I'll be stacking BRO.
The situation for UTOPIS is similar, but for now I'll stick to letting LP rewards accumulate.
For both BRO and UTOPIS, I keep them to 3 decimal places. Anything extra for both I exchange for SWAP.HIVE.
The Other LP Rewards
I'm accumulating SWAP.HIVE to buy BRO, CL (Cub Life), and INDEX (Hive Engine Index Fund). Any other LP rewards I get will be exchange for SWAP.HIVE so I can buy those tokens.
Other Liquidity Pools?
For now, I will stick with the SWAP.HIVE:PIZZA liquidity pool. At some point when I have a greater flow of HIVE coming in I'll add to more liquidity pools. By then, there may be more pools than what exist now. Who know what will be available then?
Just My Two Sats
The "base:quote" description for a liquidity pool isn't relfective of the rewards earned. Different pools exist for a variety of needs. Since Team PIZZA is very active behind the scenes (especially with gaming), it makes sense that the SWAP.HIVE:PIZZA diesel pool would offer LP rewards in a large number of Layer 2 tokens. Even with my initial (modest) additions, I can see the rewards adding up to good amounts of SWAP.HIVE I can use for my goals.
Delegating HP or Layer 2 Token Power is one of the first things a new Hiver does to earn passive rewards, especially if the right delegations are made. After making delegations, and when the wallet has enough HIVE, a good next step is to add liquidity to the diesel pools at Tribaldex. Unless your LP needs are specific, a good broad-based choice for adding liquidity is the SWAP.HIVE:PIZZA diesel pool.
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Posted Using LeoFinance Beta
If I go through people's wallets, I often see tokens that gets me confused as to where they earn them from.
At first, I thought maybe, they made comments or posts on a certain community or post using a certain tag. If you look closely, that's not the case, because these could be people who barely go to those communities.
How the hell did the earn those tokens? I usually ask. Now I understand that it's liquidity pool.
What I do not understand is how a new user can get around and gain access to these pools so that they too can earn those passive income.
What do I need to do to be a part of this is my question, sir
Most of the time, we get tokens in our wallet because we used the appropriate tags to earn them.
Sometimes we get tokens because we commented in a post which used those tags. That's how I ended up with tokens such as PAY and INFOWARS. For those tokens, I had to go through my wallet history to track down the post.
If you delegate to certain accounts, you can earn drips of the same token or drips of other tokens. @brofi is famous for accepting delagations of many Layer 2 tokens to reward delegators with a wide variety of other Layer 2 tokens. Other accounts exist which do this, but I don't know what they are.
Liquidity pools or diesel pools (same thing) work the same way, only you add liquid HIVE or liquid Layer 2 tokens to them. Delegations use staked tokens, but diesel pools use liquid tokens. What happens if you need money? If you staked, then you need to wait a while. If you added to a diesel pool, just remove what you put in.
Tribaldex is the only Hive DEX which offers liquidity pools.
What do you need to participate in a liquidity pool? Money. That's it. No status, no seniority, no upvotes, no folowers; just money.
Pick a pool you like, then add some amount of money in a 50/50 split. If you wanted to participate in a (hypothetical) SWAP.HIVE:POB pool, you would add 1 SWAP.HIVE and around 9.5 POB. It's like adding the same amount of HIVE to each part of the diesel pool, only you're using the token equivalents.
You can take part in liquidity pools right now if you wanted. If you want to wait, that's OK too; they'll be there waiting for you when the time is right.
Posted Using LeoFinance Beta
Yes, I am particularly aware of this one. I have seen them happen in people's wallets, and a few in mine.
Wow, you had the strength to go through the history. I applaud you for this.
When you say, layer 2 tokens, you mean, tokens like POB, LEO, STEM, CTP, etc, right?
I understand this paragraph perfectly well. Thank you.
I didn't understand this part well, so I decided to go through Tribalex if I'll understand. I got here 👇👇 and I am lost. Can you explain for me, more? Thanks.
You're correct in your understanding of the term "Layer 2".
Layer 1 is Hive blockchain itself, and this is where we earn HIVE.
Hive Engine is where we interact with Layer 2 tokens either directly (at Hive Engine) or indirectly (using any other wallet).
As for the example, consider this....
At the moment I type this reply, 1 POB is worth 0.121 SWAP.HIVE. That's the exchange rate to use when you want to add liquidity to the (hypothetical) SWAP.HIVE:POB pool.
Equal (more or less) amounts of HIVE need to be added to the 2 portions of the pool: 1 HIVE for the base token and 1 HIVE for the quote token. 1 HIVE's worth of the base token SWAP.HIVE is 1.00000000 SWAP.HIVE. 1 HIVE's worth of the quote token POB is around 8.26446281 POB.
So the addition will consist of 1.00000000 SWAP.HIVE and 8.26446281 POB.
For the screen capture you provided, 1 HIVE's worth of the base token is 1.00000000 SWAP.HIVE, but 1 HIVE's worth of the quote token is 69.91200716 PIZZA. So the addition you want make is 1.00000000 SWAP.HIVE and 69.91200716 PIZZA. You would need at least those quantities in your wallet before adding to the SWAP.HIVE:PIZZA pool.
About a week before Halloween I made my first addition to the SWAP.HIVE:DEC diesel pool, and I had trouble using the form there It's not difficult, but it wasn't obvious due to the form design. I go into it in more detail in the post at the link, so that should clarify the mechanics of ading liquidity.
Posted Using LeoFinance Beta
That was an interesting read. Have a !PIZZA with !LUV
<><
@magnacarta, you've been given LUV from @ahmadmanga.
Check the LUV in your H-E wallet. (3/4)
@magnacarta! The Hive.Pizza team manually curated this post.
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Great write-up and thank you for the !PIZZA shoutout!
You should absolutely be receiving some swap.hive daily. There is an issue currently with Tribaldex pools where it's a bit challenging to find the block number and check the reward payouts but we've found that they are usually pretty close to the estimated APR, though as you said this does change as people enter/exit. Let me know if you do discover you're not receiving rewards!
One thing to keep in mind is, when you add LP you will miss the following 24 hour rewards session so it is wise to only add LP one day a week (or a schedule similar).
It looks like some of the rewards dried up that were deposited (we have to manually add them). We'll see about 'jazzing' those rewards up a bit more ;)
More awesome stuff to come! We hope you were able to catch our HiveFest presentation! If not, you can jump right to our timestamp by clicking here:
Thanks for the heads up on the first 24 hours after the addition of liquidity. I'll keep that in mind going forward.
Regarding SWAP.HIVE, one reason it was hard for me to see if any came from the SWAP.HIVE:PIZZA diesel pool is because I've been selling off other assets to build up the SWAP.HIVE balance. I'll make a note of the SWAP.HIVE that's in my wallet at this moment and compare it with the SWAP.HIVE I see tomorrow. Very likely I was just too active to notice the arrival of the LP rewards; 8 decimal place-precision can have that effect on me.
Other than the question marks I had in my head, I'm happy with how the SWAP.HIVE:PIZZA diesel pool delivers its rewards, and now I know more about how pools in general operate. Thanks again for the slice of PIZZA and the informative comment.
Posted Using LeoFinance Beta
UPDATE
I can confirm that LP rewards were added to the SWAP.HIVE in my wallet. This is no longer a concern. Thanks again! !PIZZA
!BEER
Posted Using LeoFinance Beta