Directly from the desk of Carlos Mendoza, all rights reserved. ®
Today I want to talk a little about BeeSwap, this is a DeFi platform built with Hive Blockchain technology guys, really very good for passive income and much more, I also want to mention that this investment has caught my attention because I just read a little about the BXT token that can bring us very good passive income and not to mention the impermanent loss in which we can get great benefits in less than 24 hours if we know very well what we do, I will explain a little the impermanent loss.
The impermanent loss is something very complex to explain when we want to generate profit with this guys, I should also mention that it is something that carries a lot of risk, if we make an entry in a very bullish market and the market goes down we can generate loss and the only way to recover in with time guys. I should also mention that there are some pools that have some tokens listed that carry a lot of risk and if we invest in this pool the developers or the owners of the pool can pull the rug out and take all the funds out of the pool and in some cases install a backdoor in the cryptocurrency code and take your funds.
How to generate profit with impermanent loss?
I will try to explain it in the simplest way possible guys. When we contribute funds to a liquidity pool we have to have the same amount in dollars, for example, if we want to contribute liquidity in cubdefi.com in the bHIVE-bLEO pool we have to have the same amount in dollars in both cryptocurrencies, now, let's assume that we already contribute some liquidity and if the HIVE goes up 30% in 24 hours due to a pump we can withdraw the funds and both cryptocurrencies will go up 30% having a total of 60% of our investment and this is where we withdraw our funds and take the opportunity to buy stablecoin, I hope it helps for your short term or long term investment, we can take advantage of this in BeeSwap.
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