One month ago, only five days after the launch of RobiniaSwap, I decided to give the platform a try and do a 1-month experiment in which I wanted to test the platform and enter one of the liquidity pools. My goal was to try the platform and also to see whether it would be a profitable experience or not. If you don’t know anything about RobiniaSwap yet, take a look at the following article to learn more about RobiniaSwap.
What was my experiment all about? I invested $1000 in the platform, meaning that I used $500 worth of BNB and $500 worth of RBS and added it to the BNB/RBS liquidity pool on PancakeSwap. This would then give me a piece of the trading fees, and in addition, I receive a blazing interest in RobiniaSwap as I added my LP tokens to the farm.
But, we also know that adding funds to liquidity pools can be dangerous, especially if the price of the tokens should drop at the same time.
So, what happened with my investment?
Here you can see the image I made the day I entered the liquidity pool on PancakeSwap.
- I added 1.2 BNB tokens (worth $500) and I added 344 RBS tokens (worth $500)
What has happened since then? The price of BNB has grown, but the price of RBS dropped heavily. When I bought my RBS tokens, the price was $1.45 or something like that, and currently, they are trading at $0.2. That is a heavy blast. At the same time, I received great interest in RBS tokens, especially in the first day.
What has happened since then? Where is my investment now?
One month later, it was time to check the math of my investment. Once again, the RBS price dropped A LOT immediately after I bought the tokens, so if I would have done the same $1000 investment one week later, I would probably have entered with the same number of BNB tokens, but for $500, I would have received at least 1000 RBS tokens, and probably even more.
My RBS token rewards
- I received approximately 700 RBS in rewards in one month because I farmed with the LP tokens on RobiniaSwap. This is worth approximately $136 at the moment.
But, what happened to the tokens I added to the liquidity pool?
Above you can see the calculation. Leaving the liquidity pool, I received 1120 RBS tokens and 0.38 BNB tokens. The total worth of those is currently $450.
So, the 344 RBS tokens I used to join the LP pool in October has turned into 1120 RBS tokens, but the 1.2 BNB has turned into 0.38 BNB. And the total Dollar value is way down.
The final mathof my experiment
I would call this a quite terrible investment, seeing that $1000 has turned into a total of $450 + $136 in one month ($586).
Once again, this is just an experiment. I am not judging the platform at all, because I can see that they have several interesting projects coming up, and I really invested at a bad time (as the RBS token price dropped a lot due to the heave rewards they gave out at the start). So, had I invested one week later the same amount, I would probably be in a plus at the moment, and if I would do the same investment now, I have a feeling that in one month from now, the result might be even better.
But, this is also a lesson about impermanent loss, because I would have done way better just holding my tokens than using them in the liquidity pool. What do I mean? The 1.2 BNB that I added to the liquidity pool would alone be worth $720 at the moment if I had kept them, but due to the strong RBS price decrease, I receive way less BNB in return, and way more RBS tokens as I removed the funds from the liquidity pool.
This is my experience so far with RobiniaSwap. How are you doing? Do you have any questions or an experience you would like to share? I would love to hear from you!
