Binance mainline task update on June 12
Continue yesterday's talk about Binance alpha liquidity
1. Should I participate?
First of all, it should be clear that although the funds added to liquidity can be withdrawn at any time, due to the fluctuation of currency prices and gas fees, frequent operations will definitely lead to losses.
So if you have small funds, it is recommended that you reserve the funds needed for daily alpha volume and funds for participating in new listings and transactions in advance.
The remaining funds can be used for financial purposes such as adding liquidity.
2. Which trading pairs to choose
From a prudent perspective, you can choose zkj trading pairs such as usdt/zkj, bnb/zkj, usdc/zkj.
Because among all alpha tokens, only zkj has the largest market value and the smallest fluctuation, and has long-term operating capabilities and value support.
Any other tokens, including koge, are more likely to bring impermanent losses than zkj.
Of course My suggestion is just to protect the principal as much as possible to avoid risks for novice players.
If you are a skilled DeFi player, you can flexibly adjust your liquidity position according to the price situation. You can play whichever you want, and you don’t have to compete with me for the yield.
3. Range selection
Currently, I provide two range strategies for you to choose from.
Steady version: choose 1.9-2.1 for the range, you can be more Buddhist when you throw it in, and take a look at the price every day when you remember it. The probability of breaking the rules is very low. If it exceeds the range, you can manually remove the liquidity. The disadvantage is that the annualized rate will be relatively low.
Aggressive version: choose 2-2.01 for the range, the annualized rate is high, but it is easy to exceed the range, and you need to keep an eye on the coin price.
If the coin price plummets, you must sell it in time to avoid the expansion of impermanent losses.
After the coin price changes to a new consolidation range, the liquidity position needs to be manually adjusted to the new range.