I am making this post as I think many people still haven't heard about this
If you are currently participating in the SPS airdrop from splinterlands there is a (little known?) feature by which you can double your airdrop points. I am talking about the DEC-SPS liquidity pool on tribaldex.com. However, I believe there are more eligible pools, e.g., the DEC-BEE and perhaps also the DEC-HIVE pool. If anyone knows that these pools also work, please let me know :)
This pool does not look very special as the rewards are currently set at 0.1% APR. However, the real attractiveness of this pool comes from the fact that if you pool your resources here you can double your airdrop points. Let me explain:
There are many ways in which you can get airdrop points. One of them is by holding DEC in qualified wallets. However, if you pool your DEC with SPS, your DEC points double. For example, say you have 1000 DEC and leave that in your wallet. This gives you 1000 air drop points. However, if you pool it with SPS you get 2000 airdrop points! I always assumed that the rate stays the same, but doubling the airdrop points is actually huge.
If you want to maximize your SPS airdrop, this is a great way of doing it without having to buy more DEC at these elevated prices. You should, however, keep in mind that prices can drop and that you might only be able to sell DEC/SPS at a potentially much lower price than at which you bought them. The other thing to keep in mind is impermanent loss. If the value of one token increases or decreases, you will suffer impermanent loss. If you haven't heard about this, you should look it up. To put it simply, if e.g., DEC moons and SPS stays at the same price, once you remove liquidity, you will get much less DEC and more SPS, since the value of DEC has increased (and vice versa).
My strategy for mitigating this risk, is to provide liquidity on a constant basis. For example, I pool each day about 10k DEC with SPS which should somewhat counter the effect of impermanent loss since I am averaging out the price differences that happen. It is probably a good idea to not pool all of your DEC here (unless you don't have so much to start with) and provide liquidity on a constant basis.
If you know any other tips, feel free to share!
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