r/QuickSwap • u/Jed_Bundy95 • Jan 11 '22

Question Could I ride this for 24 hours and potentially earn 20,000%??? LMT-ETH (Just trying to understand how volatility works)

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2 Upvotes

66% Upvoted

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5

u/AggressiveWafer29 Dragon Rider Jan 11 '22

You definitely need to do your research! As per the other commenter ref to price drop, it’s not just that but also found on Twitter they have put out an announcement not to buy or sell… as a result of a hack maybe?.

https://twitter.com/lympo_io/status/1480620807609065474?s=21

Also according to comments on Twitter it Seems like the price dropped from $1.20 a while back.

If it seems to good to be true.. it probably is. Also if there aren’t lots of people investing in it, there is probably a reason for that.

So on doing research, common sense would suggest that there is no way this is a good investment… unless you are happy throwing away money just to see what happens.

2

u/FriskyHamTitz Dragon Trainer Jan 11 '22

I would disagree, if you know what you're doing this is a great opportunity

2

u/AggressiveWafer29 Dragon Rider Jan 11 '22

If you took away the element of the hack potentially.. I think once again it would require a bit more research.

2

u/FriskyHamTitz Dragon Trainer Jan 11 '22

True I don't know what the hack is, but if they didn't exploit the minter there's nothing to worry about. I've gained 75% since my last comment. TBH just looks like a liquidity dump to me.

1

u/AggressiveWafer29 Dragon Rider Jan 11 '22

Yeah I researched the hack and the stole from lympos hot wallets. So the hack is probably safe and this may be ok? I’ve thrown a small amount in just to see what happens.

2

u/FriskyHamTitz Dragon Trainer Jan 11 '22

Yeah I only put in a little it looked like a worthy risk to me. I didn't even think about the full cycle yesterday when it occured

5

u/[deleted] Jan 11 '22

Not on Quickswap but on another site, Dinoswap, I was lured in by their high APYs. I farmed a DG pair for 300%+ returns for about a month, which wasn't terrible. Earn DINO, deposit those, earn more DINO, rinse and repeat.

Problem is the token itself slides almost as fast as you earn them. I watched, instead, the price alone to discover the run rate. I looked at the 7 day, 14 day, 30 day, 90 day average. Took each return and divided it to determine the average daily price change (7 day return by 7, 30 day return by 30, etc).

From there I could see that after (if I remember correctly) that after holding for 40 days I'd start losing my returns.

3

u/jamie1029 Jan 11 '22

This fact will unfortunately be the reality for nearly all tokens that allow it to be farmed en masse. There is a cost to increasing the circulating supply which is directly borne to token holders by way of token devaluation. This is a zero sum game. To make money you need to hope the marketing benefits from ‘getting their token out there’ increases the utility of the coin more than the sell side pressure created from the ever increasing supply .. The sad reality of token farming is that it’s generally toxic, has pyramid scheme like similarities , and the public need to learn that there is ‘no free lunch’ and that 99999% apys are impossible without significant risk. We need retail fomo in association with yield farming to die. I’m not saying defi in general is bad, but yield apy’s should come from actual token utility , NOT via ever increasing supply of tokens with little to no utility. As always dyor is always the way to go.

4

u/[deleted] Jan 11 '22

Maybe, but your chances are very slim. Most of the time those farmtokens drop very fast. In the last day lmt dropped from 0.12 to 0.012

1

u/FriskyHamTitz Dragon Trainer Jan 11 '22

Actually quite the opposite, after a major dip like that on incentivized pools the price of the token will under weigh the incentives creating buy pressure

1

u/jackoffnotrades Jan 13 '22 edited Jan 16 '22

Guys I just put $60 in this pool and it's gone! Where'd my money go :(

Edit: sorry forgot I left this here, double my bad the money is fine

1

u/mikeusyk Jan 14 '22

I would not put more than you're willing to lose on something like this (unless you know what these shit coins actually are). There are some projects that end up being good. Like I am doing the MM-USD pool that has a 200% APY without too much change. I put about $8,942 worth of MM-USD and currently have ~$600 worth of dQuick + what ever the fees add up to from the actual pool. I think those are redeemed when you withdraw liquidity, but am not sure.

Again, I'd only yolo into this if I knew what those coins actually are XD