It took me quite a while before I invested in any diesel pools and even longer to figure out how they sort of work, but once I did I am happy that we have some new ways of storing some liquidity.
Some of the first things I was worried about were the dreaded impermanent loss and wondered if it made sense at all. What if one token goes to 0 and you get wiped out. Therefore choosing your pairs is very important. I look to choose tokens that I want to keep both of, so therefore I do not need to worry about a fluctuating token value.
Often that token is some pair with Hive, as Hive I am happy to hold and it is a very useful token for powering up, conversion and even commerce. I haven't used HBD in any commercial transactions, but Hive lots of times. Therefore, I am not convinced of any usecases for HBD.
With this out of the way, I am then interested in the returns available. Usually this is through some inflationary token, rewards or fees. It needs to be a decent return to get my interest and also something more long term instead of a token backed by nothing deflating to 0 and try to sell it as quick as you can and trying not to be the last one out.
Therefore, I haven't invested in too many diesel pools on Hive, but there are a few good ones that I have stuck with over the last couple of years and recently just added a new one that I will share today.
If you are trading tokens, diesel pools can be useful in getting you a decent price and for exchanging larger values that you might not have available on a market. I still often forget to check the prices of using a diesel pool instead of the open market, which is a mistake as you can get some good deals using pools quite often.
My current favorite diesel pool on Hive through Beeswap or Tribaldex is the LEN:LENM pool. Recently the Liotes team added Swap.BTC to the rewards which bumped up the APR to a very interesting level plus as it is Bitcoin, we can be sure that it will be a nice hedge with the Hive price for our rewards. This was a great move and I see that I already received my first Swap.BTC in my wallet:
The other rewards in there are also some very good tokens from the CTPSB and AWESOME projects which are Hive backed and therefore will also keep their value.
My next favorite pool is the great Splinterlands SPS:Swap.Hive pool where you can get nearly 30% APR from holding the SPS token which had a nice runup recently and of course Hive.
This pool provides me with some liquidity to get new cards and ingame items that I may want. With the current 30% return, it seems a no-brainer to use this pool. As I am stacking both Hive and SPS, it is a good combination for me.
The final diesel pool that I like on Hive is the recently created Swap.Hive:GLX pool where you can get around 11% APR which is lower than the others, but is a good place to park my GLX tokens that could go up in the future with games being made on the GLX platform.
Despite the tough bear market, there are still some good diesel pools on Hive producing good returns and have decent tokenomics. We have seen many projects disappear the last years and it is good to see those that take care of the tokenomics side of things still doing well as we approach the halving and alt bull run.
Do you have any favorite diesel pools on Hive?
Thanks for reading.
ps. None of this is investment advice.
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