You thought sushi is just a silly token that’s not even sushi? Well, you might be right or wrong but it’s pumping eth hard, here’s how.
[Insert Meme] ,,Impermanent Loss”
What on earth is that?
Well you remember two days ago we went sushi farming with 22 sushis and 0.2 eth because 0.2 eth bought 22 sushis two days ago. Now, as you can see below we have a lot less sushi, but almost 50% more eth.
WHO TOOK OUR SUSHI!!!??!??!?!???
You see Uniswap we all knew is not quite an exchange as we know it, but we didn’t know it can ‘steal’ our sushi!
It The bots do so because we don’t know how to code and/or are too lazy so they doing our job for us for very hefty ‘fees.’
Basically, once we bought our sushis, it’s price rose, and since we told the world we’re willing to give 22 sushis for 0.2 eth, well once price rose they were willing to take our sushis and gave us eth.
So that’s what’s liquidity? We are selling? Sushiissss??????? We thought we were just putting them in a locker or something, not giving them to the world!!!!
So we lost money. Well, we made money, a lot actually percentage wise, but we could have made more if we just kept our sushis instead of putting some stall there for all these bots to feed on cheaply.
There you are. Just 11 sushis. Reeeeee. How do you feed anybody with that! And we got just 0.8 eth for the other, well 10 point something. So we got not even $50 worth of eth for some $100 worth of sushis. Reeee.
Ok well they weren’t worth $100 when we got the drip drip eth, but you get the point. This thing is selling stuff and them bots are just eating our sushi!
We did get some free sushis though in another stall. Some chef is just giving them out, but we only got 3 sushis in erm well less than 48 hours.
So we need to add another $30 to that $50 and we lost $20. Well, we gained a lot but we could have had a pizza as well.
Also apparently Uniswap is meant to give us money too. All these bots gotta pay their dues in fees for all this sushi ‘theft,’ and we get 0.0002% of all the fees in all exchanges in the sushi eth pool.
Or do we? No idea, this clearly is a long test run, but that’s the ‘theory,’ so now we’re in some ‘trouble.’
We struggling to decide whether to get these sushis and stop these bots from stealing them, or just leave them and get the free sushis.
If our calculation is right and it is just a pizza, then whatever. It would cost more in fees to get it out and we might as well wait for this free money from Uniswap and see if it’s real or just ‘theory.’
If it’s real then we wouldn’t have lost nothing. Well we didn’t lose anything, but you get the point, and maybe with this fees we get to gain more than we could have gained with… hodl.
For a more
boring better explanation of this impertinent loss, there’s a nice post from Bancor, but basically what’s happening is when sushi rises these bots sell it for eth, so they buy eth.
And sushis are entering the third rate but London restaurant now at more than $11 per sushi. So these bots have been buying a lot of eth:
$470 should be a bit of a resistance line, but if these sushis care about that sort of thing remains to be seen, with some $1.3 billion worth of assets now locked in the dapp.
That’s a lot of assets buying eth now and then because they rising with defi quite bullish as they’re new commons companies with their
stock token created through impertinent bots.
Meaning clearly everyone wants some because there’s a lot of things happening here and plenty of it is fun, but as this impertinent loss shows, there’s also potential traps if you’re nocoder.
If you coder, just a few bot lines can ensure you yourself are the impertinent bot in self arbing against yourself and/or plus, you can take the sushis of nocoders.
Presumably there should be templates or things somewhere, but the more arbers, the less arbing opportunities, so no incentive apparently to help little poor trustnodes to protect its sushis.
Meh, we went in there with $160, it’s now $260 plus the $30, so nearly doubled in two days. Not bad for a testrun.