Pros and Cons of the Rune Savers Vaults: Changing the Price Dynamic

Hi, everyone! Continuing with the Rune Savers, @jpthor89 tells us about the pros and cons of this new implementation, how it works, and the way it could influence the pricing dynamics of Rune.

In this clip:

• Rune Savers is a great implementation that comes with its own risks
• Filling up the Rune pools can have the consequence of pushing up the incentives back to the nodes
• Savers are not a stake module; it’s not a guaranteed return
• Pooling only Rune is less risky than investing in other assets and betting on their price dynamics

Pooling Rune on the Savers Vault is not the same as staking. If you don’t wait enough to actually see gains before leaving your position, you may end up with less Rune than what you started with because of the transaction fees and the price dynamic. It is less risky than investing in a two-assets pool, but it’s not a guaranteed return.

The price dynamic would be different than when two assets have to be deployed at the same time. It won’t be immediately impacted; the earnings are attractive in a liquidity pool when it’s low, but once it goes up, the incentives will be pushed to the nodes, which would be earning more, making it attractive to buy Rune and invest there. So the prices will be impacted in the longer run.

The Rune pool will expose you to all the assets and not just one, making it attractive to invest your Rune with less risk as the markets move. Check out the video to know more details about this.

Posted Using InLeo Alpha