Just wondering if people are considering providing liquidity to the Flamingo Finance pool? I believe there is an increased risk in doing so but I unfortunately don’t fully understand what the risk involves. Can anyone explain this in layman terms or provide a link to somewhere where liquidity pool staking risk is explained?
FLM token is worth very little at the moment and I’m in two minds of whether its worth the risk in staking my Neo for liquidity. In order to decide on this I need to know exactly what risk is involved……
Like for example, what happens if hardly anyone provides liquidity……..or if the FLM token price continues to go down lower……..does this increase the risk of a liquidity provider losing their funds?
Sorry for all the questions but I can’t seem to find any of this properly explained online……and I’ve seen people asking similar questions elsewhere and a lot of confusion around it all.
Side note; I personally don’t see the FLM token price staying at these levels for long. The platform hasn’t even fully launched yet. I expect things to take off a bit once its fully up and running.
Thanks everyone! 🙂
submitted by /u/budw1ser