I love to have my money working for me and that was one of the main things that drove me into the world of cryptocurrencies. There are so many different ways to put your money to work with minimal effort.
When it comes to SPS you have a couple of different options on how to put it to work. There's no point in having it sitting liquid in your account if you do not intend to spend it anytime soon.
The first and easiest way is to simply stake it on Splinterlands and receive liquid SPS, Vouchers, and GLX tokens. At the moment of writing, you can earn around 29% APR not accounting for the GLX tokens since they're not listed on any exchange yet. The APR will go up once GLX is listed.
As you should know by now all SPS received from battle and chest rewards will go directly into staking once you claim it. This is a great way to incentivize players to hold and play for the long term instead of cashing out constantly.
The second option is to pool SPS against other cryptocurrencies like Hive, ETH, or BNB depending on your preference. I myself prefer to pool SPS-HIVE simply because it is quite easy and I don't have to pay any fees to do so.
Advantage of Pooling SPS
- At the moment the return for SPS-HIVE is around 61% which is more than double the return you would get from staking SPS alone.
- You can instantly withdraw your entire position from the pool at any time with no penalties.
- Earn trading fees on top of the liquid rewards from liquidity providing. The more people trade the SPS-Hive pair the more fees you collect from them.
Disadvantages
- Impermanent losses - meaning that if the price of SPS rises a lot faster than the price of Hive you would be better off simply holding liquid SPS instead of being a liquidity provider. I'm oversimplifying the concept of impermanent losses this is just an example.
Conclusion
How well each option will perform depends on a lot of factors so there's no clear winner, it depends on each investor's preferences. I am currently doing both because I don't mind being exposed both to Hive and SPS at the same time for some extra yield. I believe in both currencies in the long term so I'm willing to incur some impermanent losses in exchange for the reliable yield from liquidity providing.
On top of that Hive and SPS are somewhat correlated, as is most of the crypto market anyway.
What are you currently doing with your SPS?
Giveaway
⚔️ The rules:
- Minimum Reputation of 50
- Only one comment per person
- Upvote / Follow or Re-post is not mandatory but it is greatly appreciated.
- You just have to comment. If you use a different username on Splinterlands please mention the account where you want to receive the cards.
The winner will be picked by a randomizer and will be announced on next week's giveaway post.
⚔️ Cards for this week:
Cards will rotate splinter every week, Fire -> Water -> Earth -> Life -> Death -> Dragon -> Neutral. This week if you win you will receive one Merdaali Guardian!
⚔️ Last week's winner:
I'm currently using this tool to randomly pick one comment to win the giveaway.
