Hello HODLers and Liquity Providers,
After updating you with my great AVA investment a 18-20 days back, $AVA is up more than 100% since I bought it. You can read more about it there: Reached $AVA Smart Level 5 & First Dividend Payment from Travala !
Today I want to tell you about being a LP on Thorchain $RUNE for the past 2 weeks and a half on the BEP Chaosnet.
I was in profit for all of them thanks to the great price action of the $RUNE Token used as the 2nd leg of all LPs on the Chaosnet BEP platform.
With the huge move recently some of the positions are negative in terms of LP vs HODLing both assets separately but this should fade over time as I collect LP fees.
For information purposes, the Performance is +92.9% for the AVA/RUNE pair and I got 2.64% performance more from being a LP than having both assets on standalone. This means that over a Year, annualizing this gain would mean I would get +64.92% APY performance being a LP versus
As you can see the best pool is the $AVA / $RUNE one because both assets went up quite a lot therefore not making me have too much impairment losses.
What I like about investing through LPs is the fact that if markets go down the loss is less important and therefore I have the choice to pull out the liquidity if I feel one of the two legs of the LP pair is undervalued.
For example: If I have $Rune + $BTC. Rune stays stable and BTC drop by 50%. I can pull out my LP and I will have more BTC than I put in first and less RUNE). (This example is fiction of course !
The future of Thorchain and $RUNE
Honestly, I feel quite bullish and I am not selling my $RUNE even if I already made a +75% gain during the past 3 weeks.
First they have penetrated ETH community with a kind of partnership with SUSHIswap and the first $RUNE tokens on the Ethereum network.
I have not been following everything going on with the $RUNE project but the fact that it seems that implementations with ETH (ERC tokens) or even BTC are going faster than expected.
If they succeed it would be a big achievement and great for us to not have to rely on wrapped tokens to interact between blockchains.
Let's see what Thorchain will bring on !
PS: If you are a RUNE user, please point me towards great videos so I can dig deeper and consolidate mu knowledge of the project.
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