@ vitalsine you aren’t even providing you liquidity on 1inch you have you tokens on sushi swap, so if your aggregator is paying you rewards it’s in $Uni and not 1inch. You haven’t lost 100% of your 1inch you are only -28.34464827387% [ 1.32 - 1.86|/((1.32 + 1.86)/2) = 0.54/1.59 = 0.33962264150943 = 33.962264150943% ]
, while you have a 40.909090909091% increase in Eth [ 1384.60 - 992.14|/((1384.60 + 992.14)/2) = 392.46/1188.37 = 0.33025067950218 = 33.025067950218% ]
Defi is literally making you money and you don’t realize it as eth is up o~120% in the last 30 days and 1inch is up ~62% and thats why you are suffering impermanent loss on staking the pair, but you are actually up as your have 33% more Eth and it’s value is up 120%. you are actually making out quite well and are focusing on the wrong metric.
another reason you are losing 1inch is that your LP is on a DEX where people are mainly swapping eth for 1inch. so your 1inch is decreasing in amount directly proportional to your percentage of the pool those swaps are being pulled from.
this plan will not decrease impermanent loss. especially since the pair that is suggested to be the only one is such a high probability of suffering from it. Impermanent loss occurs because one coins value is so much higher than the other, and or greatly out paces the other in the pair. As ETh is doing to 1inch The only way to fight impermanent loss is too pick coins that are close in value and likely to move in similar fashion. ETH/1inch pair is literally a prime candidate for suffering the most impermanent loss, as Eth has the potential still to 10x way before 1inch does. getting rid of the other farming pairs isn’t going to decrease your chances of impermanent loss. this proposal has an extremely high probability of causing even more impermanent loss.
idk feels like due diligence wasn’t done before jumping into this investment vehicle, as impermanent loss and rug pulls are the two most likely to happen of negative consequences. This proposal is trying to reinvent the wheel with a square wheel. it’s literally going to bring about the exact thing the proposal claims to be trying to prevent (debasement of the 1inch tokens value ) because once LP moves away from 1inch the value of the token will drastically fall.
this proposal goes 180 degrees against the !inch business model. it’s trying to turn 1inch into Uniswap.
Aggregators are a 2nd layer to the Uniswap protocol that offer liquidity providers incentives to fund the project. Incentives this proposal is trying to kill.