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If I understand your example correctly, then this would simply be a case of HODLing.

Vladimir Shamanov Vladimir Shamanov Published 1 min read

If I understand your example correctly, then this would simply be a case of HODLing. It would be inaccurate to compare value appreciation of HODLing to value appreciation of investing in a liquidity pool because in the latter case, the value of your investment is dependent on a) the value of the pool's tokens (affected by demand and supply) + b) trading fees earned.

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Vladimir Shamanov

Vladimir has been working full-time in blockchain and crypto since 2018. Before that, he was in financial communications. He holds a BSc in Management from the LSE.

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