Is it safe? What are the risks?
Last updated
Last updated
Investment Risks
As with any investment, there are potential risks involved which could cause a loss in the investment. Some of these risks include:
Bluechip price dropping - Our are designed to follow the price of the bluechip crypto, so any drop in the price of that coin will directly effect your investment.
Peg token price dropping - Assets consists of 50% Bluechip and 50% peg token equivalent. These peg tokens has been designed to follow the price of their bluechip equivalent very closely, which greatly reduces this risk. However, there is still a possibility for the price of the peg token to vary greatly from the price of it's bluechip equivalent.
Impermanent Loss
To learn all about impermanent loss, please refer to this very informative Binance article:
are a representation of a token which utilizes a yield farm on one of the PegHub+ Advanced protocols. Whilst is something that should be considered with most liquidity pair positions, it is not as relevant in the case of . This is due to Peg Token being tied to the price of it's bluechip equivalent algorithmically.
What does this mean? The only way for the ratio between a bluechip and it's peg token equivalent can change is trades occurring against the peg token. However, due to the nature of the our protocols, there are many ways to keep their price as close to their bluechip equivalent as possible.