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December 23, 2020, 02:08:52 PM |
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Okay i have been wondering why do we loose some tokens when we provide liquidity on AMM exchanges. i provided liquidity on a new project that got list on uniswap. the liquidity is still okay but not huge.
I noticed that the token price has dropped over 40% and liquidity fall from 200,000 to 70,000 . At what point do my liquidity goes to Zero?
at what point do i earn positively from the pool. when the price goes down or when it goes up?
i know that if liquidity goes to zero or little, i will surfer a loss.
please share your ideas.
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