Over the years liquidity pools in Splinterlands have modified. Since land resources have come into play the liquidity pools for specific resources towards DEC has been central pools inside the game. However there are other liquidity pools on Hive-Engine that are related to Splinterlands tokens.
The largest pool is between SPS and DEC. A staggering +$338k in value in the pool and a decent daily volume close to $300 exchanged and a thirty day volume of $344k! That means in a month the net total pool value has been swapped.
A reasonable fee earned of $430 in a month.
On first glance it appears reasonable but the reality is that is about 0.1% yield in a month. Remember the whole pool is worth around $338k. Not a good passive investment and on top this DEC and SPS pair is the highest liquidity par in all of Hive-Engine. Swap.Hive and BTC comes at a close second with over $200k in assets.
For people who are new or been around only a couple years with Splinterlands they missed out on prior reward pools distributing monthly SPS for liquidity pool providers. As of today no rewards other than trading fees are yield to the providers. This probably has effected the amount of SPS staked in game as it surpassed over 1 billion token recently.
The yield of staking SPS has discrepancies between different groups. In game it lists a little under 11%, but on peakmonsters its a hair under 7.5%. If we are conservative and take peakmonster's number is is still far better then providing assets into liquidity pool. The one advantage of liquidity pools is that the assets are fully liquidity while un-staking SPS will take up to 1 full month for all SPS to be liquid.
Its still astonishing so much DEC and SPS swaps hands on a monthly basis while staking the tokens for land production and SPS staked yield much more in rewards. I then ponder as to why still we have the price of DEC unable to hold up to parity and SPS still under a penny. The liquid supply seems to be ever more restrictive but value of the tokens continue to drop.
A little over one third of the SPS to ever exist is now locked up. The supply of DEC trending lower. I think it will only be a matter of time to see both SPS and DEC rise as supply continues to reduce. In the mean time I slowly accumulate more of both tokens and continue to staked dripped liquid amounts of both tokens to play the buy low and sell high game. In due time I am hoping to see both tokens rise in price.
