Liquidity Mining with your favorite (non-stable) coin.
Mixed Hives have higher APYs but are considered to be more risky than Stablecoin Hives. Make sure to read about the attached risks and to do your own research before investing.
A Mixed Hive is a liquidity pool where one of the currencies is a stable- and one a normal coin/token. (e.g. BUSD and BNB).
Mixed Hives have higher APY but are considered to be more risky than Stablecoin Hives for two reasons:
- Impermanent Loss
- Volatility / Price Risk
If you want to invest in a Mixed Hive, you should trust the value of the non-stablecoin and assume a long-term investment.
Impermanent Loss happens, when the price of one of the tokens in a Hive(pool) loses value compared to the other and the liquidity provider is left with a unfavorable proportion. The counterpart of Impermanent Loss is Impermanent Win, which can also occur.
Because one token in the pair is a "normal" coin/token, it is obvious that the price can rise and fall during the time of your mining. Liquidity Mining in Mixed Hives is still a form of speculation and you will lose money when prices fall.
Mining in Mixed Hives makes sense if you have a long time-horizon and if you truly believe in the "normal" (non-stable) token of the pair.