It's been 8 days since I made my last post about adding liquidity to the zing.swap.hive liquidity pool over at TribalDex. Back then, the APR was 234% which is really high but, to be honest, I did not really comprehend how high it was. I mentioned that the returns would be high but I guess I had one of those prolonged brain-fart moments that did not let me really know how high these returns would actually be.
To assess, let me recall that I added 1000 zing and about 15 swap.hive to the pool just 8 days ago when these amounts had equal dollar values.
At the time of writing this I have 878.818 zing and 17.206 swap.hive which is less zing and more swap.hive because zing increased more in value compared to hive.
As you can see from the images above, the APR shot up from 234.12% to 242.49%. Of course these numbers always change but the general range is still pretty high.
I don't think enough people are taking advantage of these high numbers. I've scrolled through the community and seen more people talk about staking and delegating than about the liquidity pool. I get it. Not a lot of people understand these things and it is also the riskiest way to earn this token. I mean, it took me quite a while to see the potential. I had to think about it for a while before realizing the opportunity I was potentially missing out on.
So, last week I added about $11 to the pool and with an APR of 234.02% at the time, my returns per week would be given as;
2.3402 x $11 = $25.7422
$25.7422/52.14 weeks in a year ≈ 0.49 $/week
We'll just round it up to $0.5 per week.
So, it has been 8 days and I went to go check on my earnings and, what do you know, the math checks out. Considering that the APR changes very often, here is what I got in 8 days of providing liquidity with $11 as shown on Hive Engine;
So, from the image, the value of the earnings is just right around where I want it to be.
It was at the moment after I checked this that I hit my hand on my forehead as my eyes widened and I said the phrase "of course!".
$0.5 is really a negligible amount that will eventually add up to something I will spend in a single night. I know. The good news, though, is that I can always increase my share and receive greater returns. That is why I plan to increase my position in the liquidity pool every week until I get to $110 which, if the APR remains in that range, will be making me a passive $5 per week not to mention rewards from transaction fees.
Of course, I don't plan to stop there. $110 is just the first milestone I want to reach. I will still continue to add to the liquidity pool as much as I can. I have quite an optimistic goal but I rather keep it to myself for now.
I know that providing liquidity can be very risky but I'm not really worried about risk in this case. I already know that hive has stood the test of time and zing is in the hands of a great community that actually values it. Also, the risk is totally worth the rewards in this case. It is quite clear that any risk right now isn't really anything compared to the potential rewards.
The zing token is still in its early stage and there is a lot of hype around it. This is a major factor for me. This is a major reason why I am confident in adding to this liquidity pool. It's also the only one for zing right now and so I expect the APR to remain quite high or even increase because people who need zing have to use it. The token itself has a huge potential for growth. To be conservative, a 10x on this token this year isn't impossible. A 10x can really make the rewards from the pool worth it in the long run. These are just more reasons why the rewards are definitely worth the risk.
On that note, I increased my position in the zing.swap.hive liquidity pool. I added 850 zing and 16.3 swap.hive to get the total value up to $21..
I just doubled my share in the pool. So instead of 0.03%, I now own 0.06% which is small fish levels. Also, my passive earnings at this rate have gone up from an almost negligible $0.5 per week to a less unimpressive $1 per week. Approximately, of course.
This is just the beginning. Providing liquidity is currently my biggest priority. I am on a quest to increase my shares in this pool and I will not be deterred.
