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Jacek.degen.eth 🎩
@jacek
It pays to provide $DEGEN liquidity, just make sure you understand impermanent loss. No free lunches in DeFi, degen!
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Abbas🎩👾
@abbass.eth
Liquidity is a huge asset in maintaining the ecosystem, especially in such markets. I need to look more into Investing in LPs. Tbh, I don't know too much about lp V1, 2, 3, and now V4 of LP, I think. Tried the V2 once and have no clue how people could lose money in it. Could people get liquidated? Or its just the change of the assets.
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Jacek.degen.eth 🎩
@jacek
Yeah, it’s mostly about impermanent loss. Uniswap v4 adds hooks, making pools more customizable—you can even whitelist who can provide liquidity. V3 introduced concentrated liquidity, but there’s no liquidation; you just end up holding more of one asset as prices shift.
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Abbas🎩👾
@abbass.eth
Ah, great. So briefly, I could end up holding much more $DEGEN than USDC, for example. And in top of the rewards on the pool i got airdropped more $degen each season? **Oh just remembered i dont even hold usdc cz it sounds bearish**😂
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Jacek.degen.eth 🎩
@jacek
Haha, exactly! Since the incentives are in the DEGEN/WETH pool, when DEGEN drops, you end up holding more DEGEN and less ETH. When DEGEN pumps, you get more ETH and less DEGEN. Either way, you’re stacking trading fees the whole time!
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