In mid-October 2021 I took the plunge into the SWAP.HIVE:DEC liquidity pool for my first attempt at earning passive income using diesel pools. I figured out the mechanics of adding to diesel pools, and I had been making small additions to this one. It's mid-November 2021, and after reviewing my experiences with the SWAP.HIVE:DEC pool I decided it was time to switch to another diesel pool. I'm still a novice trader, and these are my notes.
Screen captures came from TribalDex and were edited in MS Paint for clarity.
The Expectations I Had
One reason I took the plunge into the diesel pool was to earn rewards. ("Well, duh!")
My contributions to the SWAP.HIVE:DEC diesel pool were modest in comparison to those made by most people participating in it, but I was able to add to my share of the pool regularly.
I was expecting to see daily (or at least) periodic drips of SWAP.HIVE (the base token)and DEC )the quote token). After all, that's what I added to the diesel pool.
The Discoveries I Made
It turns out that when a pool offers rewards, the rewards aren't necessarily those of the base token or the quote token. The could be one, or the other, or even neither.
Neither?
I was shocked to discover that, but I checked for myself:
4 other tokens were offered as rewards:
- BEE -- By the time I made my first additions to the SWAP.HIVE:DEC diesel pool, I had already been earning BEE from posts. When I see BEE in my wallet, this is waht I was thinking was happening.
- STARBITS -- I don't play Rising Star (or any other games, at least for now), so I thought I must have commented on a post where one of the game tags was used.
- LVL -- As with WAIV, the LVL came to me mysteriously. I had no idea what LVL was or how I could have earned any. As with the WAIV I received, I sold it at LeoDex.
- WINE -- A few weeks ago there was trouble with the project, so WINE was effectively suspended and replaced with WINEX. I sold the WINE as soon as I noticed it in my wallet.
No SWAP.HIVE. No DEC.
Free money is free money, so I can't complain about that. Still, I had other expectations, and they were not met. I psyched myself out, and that's not what you want to have happen if you're engaged in trading of any kind.
Reviewing LP Rewards
First, not every diesel pool offers LP Rewards. Why some pools offer LP rewards while others don't, I have no idea at this time and I don't know enough about them to even attempt a guess.
With that detail in mind, I reviewed the LP rewards for the diesel pools which offered them. No longer concerned with the base token or quote token being among the rewards, I saw that some rewarded 2 tokens, and others rewarded 3 or 4.
Then I discovered the SWAP.HIVE.PIZZA pool.
The Winner (for Me): SWAP.HIVE:PIZZA
At the time I discovered SWAP.HIVE:PIZZA pool, these were the LP rewards offered:
10 tokens were offered as rewards!
I knew that Team PIZZA was a big player behind the scenes in establishing partnerships with other projects (especially with Rising Star and even Splinterlands), but I didn't realize the partnerships were that extensive.
What did I find?
- Base and Quote Tokens -- SWAP.HIVE and PIZZA are offered as rewards in the SWAP.HIVE:PIZZA diesel pool, so that was a good sign;
- High-Profile Tokens -- LEO for LeoFinance and CTP for ClickTrackProfit;
- Up-and-Coming Tokens -- ALIVE for the We Are Alive tribe;
- Gaming Tokens -- SIM for dCity, APE for APE Mining Club, and STARBITS for Rising Star;
- Engagement Tokens -- (besides PIZZA) WINE; and
- High-Value Token -- UTOPIS.
With a good mix of tokens like that, I thought it was too good to pass up. So I decided to remove liquidity from the SWAP.HIVE:DEC diesel pool, sell the DEC tokens, buy PIZZA tokens, and add liquidity to the SWAP.HIVE:PIZZA diesel pool.
What Happened Since Then
In my wallet I didn't see extra SWAP.HIVE or PIZZA tokens, which I thought was weird. Then again, they may be added to my additions in the diesel pool; I need to find out what happened with those rewards.
However, I had been receiving rewards from the other 8 tokens. Perhaps the SWAP.HIVE and PIZZA LP rewards were transformed into LP rewards for the other tokens; I can't say.
Other Observations
Pool Activity Is Fluid
Just as people add and remove money into a diesel pool, the tokens used for rewards can be added and removed. I only discovered this within the last day or two. This is what the LP rewards for SWAP.HIVE:PIZZA look like as of post time:
Combining the last 2 images, this is how the LP rewards picture changed for me:
- Present
- SWAP.HIVE
- UTOPIS
- ALIVE
- APE
- Removed
- PIZZA
- LEO
- SIM
- CTP
- STARBITS
- WINE
- Added
- VIBES
- ONEUP
- BRO
How these rewards are assigned to the pools is a mystery to me. Over time I should discover why this is the case. For now, I'm happy to earn whatever LP rewards I receive.
My Notes
BRO and UTOPIS Are Worth Stacking
Once I cleared out my wallet to begin to add to liquidity pools, I discovered I also had enough SWAP.HIVE to buy BRO. Besides the LP rewards from the pool, I use SWAP.HIVE to buy more BRO. I'm just starting, so the amounts are low. Six months from now, who knows how much I'll have. Whether it's from LP rewards or outright purchases at the DEX, I'll be stacking BRO.
The situation for UTOPIS is similar, but for now I'll stick to letting LP rewards accumulate.
For both BRO and UTOPIS, I keep them to 3 decimal places. Anything extra for both I exchange for SWAP.HIVE.
The Other LP Rewards
I'm accumulating SWAP.HIVE to buy BRO, CL (Cub Life), and INDEX (Hive Engine Index Fund). Any other LP rewards I get will be exchange for SWAP.HIVE so I can buy those tokens.
Other Liquidity Pools?
For now, I will stick with the SWAP.HIVE:PIZZA liquidity pool. At some point when I have a greater flow of HIVE coming in I'll add to more liquidity pools. By then, there may be more pools than what exist now. Who know what will be available then?
Just My Two Sats
The "base:quote" description for a liquidity pool isn't relfective of the rewards earned. Different pools exist for a variety of needs. Since Team PIZZA is very active behind the scenes (especially with gaming), it makes sense that the SWAP.HIVE:PIZZA diesel pool would offer LP rewards in a large number of Layer 2 tokens. Even with my initial (modest) additions, I can see the rewards adding up to good amounts of SWAP.HIVE I can use for my goals.
Delegating HP or Layer 2 Token Power is one of the first things a new Hiver does to earn passive rewards, especially if the right delegations are made. After making delegations, and when the wallet has enough HIVE, a good next step is to add liquidity to the diesel pools at Tribaldex. Unless your LP needs are specific, a good broad-based choice for adding liquidity is the SWAP.HIVE:PIZZA diesel pool.
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| Sometimes I discover posts way after the initial earnings period. It's too late for me to upvote posts then, so to make up for the lost upvote I send a slice of "!"PIZZA instead. My main focus is cryptocurrencies from a number of angles (educational, commentary, observations, even pop culture). A secondary focus is sharing my discoveries about the world of Hive Social. Most of my posts can be found at these two locations: ● LeoFinance : @magnacarta ● Proof of Brain : @magnacarta Follow me at this D.Buzz-only account : ● D.Buzz : https://blog.d.buzz/#/@magnacarta.buzz-- note the ".buzz" at the end! I also expect Festivus to take off in popularity in the coming years. |