Hello Lions! It has been a while since I last posted anything for LPUD. But today is special as $LEO is trading Over 10 cents per token. It has been a while since we saw these levels. Of course the latest AMA announcing the listing of $WLEO on Maya Protocol and LPUD itself might have added a bit of buying pressure here.
If we check the chart on tribaldex we can see that volume has not been very high in the past 24 hours. But this is not the only way to get $LEO. In fact the spot market for $LEO is absolutely shallow and there is not a lot of depth so one would significantly move the price if the wanted to buy a larger quantity of $LEO
If you would like to purchase a larger amount of LEO there are several liquidity pools to choose from.
The biggest on HIVE engine is the LEO:SWAP.HIVE pool.
You can swap a couple of of HIVE for LEO but as soon as you go into the 1000 HIVE region the price impact would be quite significant. On the below picture you can see that swapping 300 swap.hive for LEO would impact the price by 0.67-1.17%
Add another 0 and the price impact would be too high for most traders.
So how does one get a significant amount of $LEO without impacting the price too much?
There is an option to get the 11k LEO with a price impact of less than 2%
And you can even get a huge discount on the current price.
I am talking about the WLEO:ETH liquidity pool on UNISWAP
As you can see the price impact to get the same amount of $LEO would be only a bit more than 1%
If someone wants to arbitrage and buy WLEO to sell it on HIVE engine, they would have to calculate carefully how much gas they are going to pay for:
Another liquidity pool that can be used to get larger quantities of $LEO would be the $BLEO:$WBNB pool on the Binance Smart Chain(BSC)
The price difference is not that big but fees are much lower on BSC
source: https://www.geckoterminal.com/de/bsc/pools/0x0bca6e9b2c6c83ebd457fb0d12fa5763114a8920
The cost of unwrapping the $WLEO to $LEO would most certainly also be significantly lower than on Ethereum.
Soon there will be another way to transact with $WLEO over the Maya Protocol hopefully raising the liquidity to levels where larger players can enter the market without a huge price impact. The numbers I entered on Uniswap a rookie numbers and there are a lot of people that would probably enter with much larger amounts if they could.
For that we need to build liquidity and we need to build it bigtime.
So today I powered up 300 $LEO and kept some liquid to be able to participate when the Maya Protocol is implemented.
HAppy LPUD everyone and thanks for reading! Lets build that liquidity so we can all thrive!
Disclaimer: the content of this article is purely for informational and recreational purposes and is in no form any type of investment advice. Do your own research and only invest what you can afford to lose. Trading in cryptocurrencies is tied to high risk!
