A noob having questions about "Diesel Pools", any help is welcome...

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Diesel Pools

The name sounds very strange, it really makes me think of a pool of diesel on the lot of wrecked car cemetery. But apparently it is something very useful in DeFi and crypto. It is supposed to provide liquidity. But I am a complete nood at this, and I would like some answers to some really simple questions.

  1. To whom am I providing liquidity when I put down tokens in a diesel pool?
    It may sound ridiculous to ask this question, but I have deposited some SPORTS and an equal amount of HIVE in a SPORTS/HIVE pool. But I have no clue whatsoever who is benefiting from this, and why this kind of action is helpful. So, be free to answer me in layman's terms.

  2. What is in it for me?
    As I said above, I have put down some SPORTS and some HIVE, and I am supposed to get rewarded for providing this liquidity. But how? And when? And from whom?
    I know the amount I deposited is very tiny, but it was out of curiousity that I did it. But now I have even more questions, as I can not see any rewards for me. And Tribaldex is supposed to project 24 hour rewards, but apparently those are not available. So I am even more in the dark now. So feel free to enlighten me on how and how much (or how little) this will reward me?

Knipsel.JPG
Apparently I am not in a good pool... ;-)

  1. Any good advice?
    Last but not least! If you have some tips about how to make this as profitable as possible, you can tell me, I am no whale so, I won't take your best positions away from you.

Sincerely,

Pele23

Posted Using LeoFinance Beta



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13 comments
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(Edited)

I will follow this post as well. I need to know much about pools, thanks.

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I can tell you a bit the rewards go direct to your hive engine account they show up once a day not sure what time it is done but I do get them.

I know this as I am in a couple that I had no tokens in them now everyday I get some.

As for the rest of your questions I am not sure maybe someone who knows more than me can help.

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Tnx, I have not noticed rewards yet, but maybe they are too small to notice. 🤣

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You can check on how much you are getting on the diesel fuel page click
your positions button and it will show you on the right of that page how much you should be getting per day. If it is showing nothing per day it means you have not put in enough to get rewards

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Happy to see you asking as I haven't touched them either yet. I use my tokens for curation so don't know if this is better or not and suppose it depends how busy you are on Hive and the tribes.

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I use mine for curation too, but I was curious, so I thought 50k sports would because good start… but nothing really 😂

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Diesel Pools
The name sounds very strange

The name 'Diesel' Pool is a play on words from Ethereum's Gas fees.

As our blockchain doesn't have the same fee structure, DeFi on Hive has to function a little differently.


To whom am I providing liquidity when I put down tokens in a diesel pool?

You're providing liquidity to the pool in the form of 2 equally valued sides.

Eg. you're in the SPORTS:SWAP.HIVE LP, so you're providing an equal value of SPORTS and SWAP.HIVE tokens to the pool itself.

By providing liquidity to this pool, you're allowing others to swap between these 2 tokens with limited slippage.


What is in it for me?

In traditional LPs like you see on platforms like Cub Finance, you are rewarded for providing liquidity from trading fees and newly printed tokens.

But in this particular pool on Hive, this doesn't apply.

I'd encourage you to use the BeeSwap front-end to view pools and check the boxes that say 'show only with rewards' and 'show only with BXT rewards'.

This way you can see the pools where you will earn various rewards for providing liquidity to certain pools.

I've always said that the best pool is the SIM:SWAP.HIVE LP, but each pay their rewards in different ways so definitely do your own research and pick one that works for you.

Any good advice?

@r1s2g3's advice at the bottom of his Hive DeFi basics post is great.

The only thing I would add is the transactions showing your rewards don't show up on HiveBlocks, so you have to check that they're coming in manually.

Annoying, but it is what it is.

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Allright, that is at least an explanation I can understand. Thanks for explaining and I will check the beeswap page out to see if there’s something interesting for me!

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Diesel pools are essentially AMM pools (similar to the swap pools you see on Uniswap on ETH or Pancakeswap on BSC). So this allows users to use the pools without relying on the order book you usually see in LeoDex or Hive Engine. This tends to be a midpoint price so you won't get the best price but usually its a better price.

Only specific pools give you rewards so you need to see whether or not they do. Some of which doesn't really give you much and you are also risking impermanent loss for providing liquidity. So you might end up with more of one side of the token if the prices change.

One thing to note was that there was no fee for using a diesel pool in the past but they mentioned that there will be a fee being added. In a way, people will be charged a small fee for using the pool and part of it will be returned to the liquidity providers. I don't particularly like this change as it was one way the diesel pool stood out compared to Defi swap pools.

Posted Using LeoFinance Beta

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