Liquidity pools - Anyone got experience?

[irishbeast]

Just saw a video from my old Mentor and hes's doing exceptionally well holding Brett and Eth in a liquidity pool.
He has far more money to invest than me but the calculations suggest I could make 182 bucks a month from 1000 bucks investment. Of course there is some risk but it really seems like a better idea than potentially holding them in an exchange, especially as alts are bleeding heavily.

I'm no expert so any info would be ace as this correction may last a while, hopefully not too long of course!

Thanks in advance

[MrSpasybo]

Just saw a video from my old Mentor and hes's doing exceptionally well holding Brett and Eth in a liquidity pool.
He has far more money to invest than me but the calculations suggest I could make 182 bucks a month from 1000 bucks investment. Of course there is some risk but it really seems like a better idea than potentially holding them in an exchange, especially as alts are bleeding heavily.

I'm no expert so any info would be ace as this correction may last a while, hopefully not too long of course!

Perhaps you are referring to liquidity mining BRETT/WETH on Base's DEXs. An APR of 18.2% per month is an attractive profit, you can try to refer to and learn more.

However, according to my calculations from UniSwap v3 data, Vol = $2.75M/day ~ $82.5M/month => fees 0.3% = $0.25M = 1.6%/month from Liquidity $ 15.66M << 18.2%/month.

Perhaps the profit your Mentor mentioned comes not only from liquidity rewards but also from the price increase of BRETT and ETH.

• BRETT/WETH on Base UniSwap v3

[jeraldskie11]

If you have money in an exchange, I would suggest to do staking than put it a liquidity. You can make profit through liquidity but there's a higher risk compared with staking. For me, if you really don't know how exactly liquidity pools works, then just stay away from it. While if you stake your money, you can get back the money you staked and get rewards from what you have staked. So it's totally free money, you can earn no matter what the market condition.

[Faisal2202]

If you have money in an exchange, I would suggest to do staking than put it a liquidity. You can make profit through liquidity but there's a higher risk compared with staking. For me, if you really don't know how exactly liquidity pools works, then just stay away from it. While if you stake your money, you can get back the money you staked and get rewards from what you have staked. So it's totally free money, you can earn no matter what the market condition.

In staking market condition also matters. Like if you chose a coin which is decreasing its potential by time and not going to go up then its not a good ide to buy it and stake it no doubt with time the number of tokens of that project will be more in your wallet when you will stake them. But what if that project flops or loses most of the potential or not going to make another good move then you are losing.

So it would be good to advice OP that selection of best token is necessary at the moment ETH is on peak as I have heard the ETF trading for ETH is going to start soon and when that will happen the trading volume will increase for ETH drastically plus its still underrated project right now. Disclaimer: I don't suggest or ask anyone to do staking NFA so DYOR.

[yhiaali3]

Yes, that's right, as you mentioned, altcoins are bleeding heavily and holding them on exchanges is a risk and a constant loss of capital, unless you want to hold them in the long term.

Therefore, it is best at the present time to stay away from risks by investing your assets in a liquidity pool, staking, or market maker to achieve some passive income while staying somewhat away from high risks.

There are many DEX's that offer liquidity pools with good returns but you need to choose your liquidity pairs well to avoid the high risks of very low prices.

The new TON network looks good and promising. You can look for some liquidity pools that offer good returns and try them out.

[akeemqaz]

Liquidity pools offer various earning opportunities. In my experience, the highest APR pools are often found on newer networks, not Ethereum. I prefer adding liquidity to pools on emerging blockchains, especially those without their own tokens. For example, I'm currently earning over 50% APR on the Bsquared network using Gloswap. A $1K investment could potentially yield significant returns.
Another option is using centralized exchanges like Bitget's Smart Portfolio. This feature allows you to pair different coins and earn competitive APY, similar to traditional liquidity pools but on a centralized platform.
See the screenshot :

[bhadz]

I will never put a $1k on any liquidity pool. The risk is too high for me and that's a big money to spare with. I'd rather go with those lesser APR/APYs than risk with it. But as the saying goes, "no risk, no glory". This really depends on everyone's status about taking risk and how financially well you are.

[hugeblack]

I think it is difficult to obtain 18.2% per month per month in dollars from the mining pool. Understand it, if the project is strong, this is a drain on liquidity instead of saving it, but it is possible to obtain it with the currency token, and then the bet is on the token maintaining its value in order to make a profit from providing that Liquidity.


In general, 4% is possible for anyone who wants to try liquidity pools. It is true that using binance pools is the safest, but it makes the entire system move quickly towards centralized solutions.

[Mr. Magkaisa]

Just saw a video from my old Mentor and hes's doing exceptionally well holding Brett and Eth in a liquidity pool.
He has far more money to invest than me but the calculations suggest I could make 182 bucks a month from 1000 bucks investment. Of course there is some risk but it really seems like a better idea than potentially holding them in an exchange, especially as alts are bleeding heavily.

I'm no expert so any info would be ace as this correction may last a while, hopefully not too long of course!

Thanks in advance

        -   Well, as for Brett, I can say that he really has potential in the market because his market cap is 1.5 billion dollars and the total trading volume he has on all the exchanges where he is listed totals around 100 million dollars more than a day. out of 10 exchanges, 7 on CEX and 3 on DEX.

Now, if you leave funds in an exchange and buy it with Brett, it is better to put it in staking or farming so that at least it has some money to grow. It's like a double blade if you're a long-term investor.

[Fivestar4everMVP]

Just saw a video from my old Mentor and hes's doing exceptionally well holding Brett and Eth in a liquidity pool.
He has far more money to invest than me but the calculations suggest I could make 182 bucks a month from 1000 bucks investment. Of course there is some risk but it really seems like a better idea than potentially holding them in an exchange, especially as alts are bleeding heavily.

I'm no expert so any info would be ace as this correction may last a while, hopefully not too long of course!

Thanks in advance

Putting your crypto investments in liquidity pools can be very profitable, most especially if the coin or token is one that is attracting a lot of buying and selling everyday.

But you also have to understand that there is the risk of loss as well, for example, if you are putting your BRETT in a USDT pool, you need equal amount of both, that is for example, $1000 USDT  and $1000 worth of BRETT, at the end of the day, you will either lose some of your Brett or you will lose some of your usdt, it depends on the market condition, but then, this loss can be covered by the profit you make from the pool, this is if the pool is highly profitable, this is why it's important to make a proper and thorough calculations before putting your money in liquidity pools.

[hugeblack]

Putting your crypto investments in liquidity pools can be very profitable, most especially if the coin or token is one that is attracting a lot of buying and selling everyday.

Yes, but on the other hand, the liquidity pool will not give you the ability to withdraw your profits on a daily or sometimes weekly basis. In the end, the liquidity pool needs the tokens to be closed for a period to ensure profits and then distribute a portion of the profits to the participants in the pool.

[EluguHcman]

Just saw a video from my old Mentor and hes's doing exceptionally well holding Brett and Eth in a liquidity pool.
He has far more money to invest than me but the calculations suggest I could make 182 bucks a month from 1000 bucks investment. Of course there is some risk but it really seems like a better idea than potentially holding them in an exchange, especially as alts are bleeding heavily.

I'm no expert so any info would be ace as this correction may last a while, hopefully not too long of course!

Thanks in advance

Admitting that your boss has more money to invest that you do is feasible that he can afford to lose huge amount which maybe unbearable if it was you.

So I will advice that you should not take it as a competition with him because this a volatile market we are all in here for and anything is possible to happen. So your time of investing could turn down the market just as you said Altcoins are currently bleeding.
So you should think twice if you are really ready to take the risks.