Chain Game Seraph S3 Season, Cathy’s liquidity mining income statistics:
🔴 I began adding 4 different SERAPH and USDT token pairs for liquidity LP on June 12, and by July 10, over a total of 28 days, the earned fee income was 1781.77u.
172.06 + 630.35 + 693.04 + 286.32
🔴 Analyzing the data from the 4 charts below, the insights from adding liquidity to earn fees are:
1. When adding liquidity, the price range set by the user is very important. If the price of $SERAPH fluctuates within the price range I set, I can earn fee income every moment. If the price goes beyond the price range I set, I will not earn any fees.
2. When adding the same amount of liquidity LP, the wider the price range set, the lower the fee income. The narrower the price range (and greater than the actual price fluctuation range), the higher the fee income.
3. In the official Seraph tutorial on the Pancake page for adding liquidity, there is a recommendation for users to choose the full price range: Thank you to the project team/Pancake for the enthusiasm, but please don’t recommend it next time.
4. I will withdraw two of the liquidity pairs with extremely low income and reset the price range to continue liquidity mining in SERAPH.
🔴 No effort required, just put in 18,000u of two coins for liquidity mining, and in 28 days, I earned 1700u. Where can I find such a good deal?
However, everything that is beneficial has its drawbacks, and the risk of doing this is: If the price of $SERAPH drops significantly, the principal will be lost, but there are solutions:
1. When adding liquidity, everyone can add more USDT and less $SERAPH tokens, as the price of USDT generally does not drop.
2. If you added 10,000 $SERAPH tokens on Pancake, you can open a short position of 10,000 $SERAPH tokens on the exchange to hedge. In case the price of $SERAPH drops, the losses from the $SERAPH tokens added to the pool can be compensated by the short position.
🔴 A short position also carries risk; if the price of Seraph doubles, this short position could also be liquidated.
This is a bitter lesson; last year I lost nearly 90,000u from a contract liquidation due to this.