RE: Holozing: ZING Market Value & Alpha Vials - Updated APR and Break-Even Calculations (ENG/ITA)
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Thanks for the update! Agree on most things but not sure about this one:
In the worst case scenario = if ZING were to go to 0, I would be at a loss but would still have my share in SWAP.HIVE to withdraw from the pool
I'm not too much of an expert or even intermediate in pools but if zing were go go to 0 or close to it, wouldn't that mean that there's barely any hive left in the pool to withdraw? Maybe @edicted can help us out :D
also another thing, we may slide the collection rewards a bit more gradually when opening becomes available rather than all rewards at once going to creatures and items based on rarities and amounts. So there may still be some additional time for vials to earn you extra zing as unopened!
Yes if Zing drops to zero it means you can no longer trade it for Hive and it's all been extracted.
LPs take a big risk and only get half of the reward if number goes up... which is why APR on the LP needs to be relatively high to make up for this.
omg why did you tell them, u ruined my rug
Oh it's because you tagged me and baited me into saying this exact thing.
My bad!
I should have known better.
Thanks for the comment @acidyo and thanks to @edicted for the explanation
You're right, in the worst case where ZING goes to zero the pool would be arbitrated to empty the part in SWAP.HIVE, so that would leave only ZING with no value = no protection for me.
The pool gives me a margin of protection in cases of gradual declines in the sense that I will probably have more time (compared to simply hold or staking) and rewards + fees to compensate for losses but in case of collapse I will have no protection.
When I wrote that sentence I was thinking of gradual declines but what I wrote was incorrect and I have correct it thanks to you and edicted.
First:
Corrected part: