RE: 100% APY on LasseCash pool and update on Lasse.

I hope one day that the eco-system will answer these sort of questions.

Well the SWAP.HIVE:LASSECASH pool might be a good place to learn about this stuff.

Of-course if the token LASSECASH falls in value and everything else is equal, then there is a loss. Actually in this situation the APY will go up to a higher number, but on a smaller value of the liquidity.

The risk in liquidity providing is called impermanent loss, that is a very well established term and it goes for all liquidity providing on pools on all chains I guess.

The risk of impermanent loss is kind-of complicated to explain, but in very short, if the token values goes against you, you incur a loss.

So liquidity providing for SWAP.HIVE:LASSECASH carries the risk of impermanent loss.

If the token values of SWAP.HIVE and LASSECASH goes down you will have a loss in value.

But the idea is that you buy LASSECASH if you believe in the product and then get increased value when the token value goes up in value, on top of that you get more LASSECASH tokens and LasseCash ecosystem tokens from providing liquidity, the ladder which again I believe will have a value.

Its HIGH RISK, HIGH RETURN sort of scenario, even though in my oppinion the risk is limited right now and for a long time, since the product is established and has a future in my oppinion.

Posted using LasseCash