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RE: How to Earn Passive Income with SPS, GLX and COLONY Tokens
Nice reminder for me. I have these tokens and I check SPS often but not the others so I probably have rewards to collect.
The SPS:COLONY pool offers an APR of 21% paid in COLONY tokens. This means that if you add $100 worth of SPS ($50) and COLONY ($50), you will receive COLONY tokens worth $21 daily ($21/365).
Should be $0.0576 daily rather than 21? That's what I get doing the 21 / 365 math. :)
Impermanent Loss! People don't think about that enough. And really, what cah you do? You can't predict it. If you could predict with certainty which token would go up the most, you would just go and buy that token, Unless it goes up less than what you're going to make from LP Rewards, but you can't predict that either! :)
Yes, 21/365 daily 😀
Only way to mitigate risk of impermanent loss is to keep records of how much you put in and monitor their prices daily. Good thing about LP's is their liquidity. You can withdraw funds at once.