What are the risks involved in using your tokens to provide or add liquidity on a pool? Any risk at all apart from the tokens losing value before the APY runs out? I am a long term holder and I don't want to keep holding without earning some tokens more.
The first risk is impermanent loss.
That's because of being locked within a long period of time just to provide liquidity on a pool. And you don't know how much the value will be to your locked tokens.
And the same goes to the pool token that you're helping to provide liquidity. I've learned a big lesson on this one and that's why I'm avoiding it any further because of not so big loss that I've made.
But, you can't just read what the market will look like while your tokens are there locked.
