"Became a merchant" Challenge Diary (after 5 weeks)
Hi!
At the beginning of this year, I started a challenge related to Splinterlands Market Pools. You can read about it in this post
In this article, I would like to share the status after the first 5 weeks.
What do I do every Sunday?
As I described in my initial post, I provide 10k DEC worth liquidity to the five pools (2k each) each week. I also try to maintain the balance between them (20% each), so if one liquidity contains more value, I will put less DEC into that.
Steps for each pool:
- Calculate how much DEC I will invest in the pool (e.g., 2000 DEC)
- Buy the particular asset for half of the DEC (e.g., GRAIN for 1000 DEC)
- Put the remaining DEC and the asset into the corresponding pool (DEC-GRAIN)
Why are we starting immediately with a -10% loss?
Currently, if you would like to swap your DEC to any other asset (VOUCHER, GRAIN, WOOD, STONE, IRON), you must calculate with a 10% fee. E.g., if you want to buy GRAIN from 1000 DEC, you only get GRAIN after 900 DEC.
The rule is the same in the other direction. If you would like to sell 1000 GRAIN, you will only get DEC after 900 GRAIN. When I will once "cash out", I will be able to sell only 90% of my assets :S
So reaching our goal will be a little bit harder, because we have to make at least 10% profit to reach only the break-even point.
When I calculate the DEC to invest, I use the following formula:
DEC to buy the asset = DEC to invest / 19 x 10
(I need 10 part of DEC and 9 part of the asset for the liquidity)
Aggregated transactions (week 1-5)
| Market | DEC Investment | Asset Investment | Asset Amount | Average Asset Price |
|---|---|---|---|---|
| VOUCHER | 4,979.122 | 5,532.381 | 179.793 | 30.77084 |
| GRAIN | 4,762.006 | 5,291 | 281,055.069 | 0.01883 |
| WOOD | 4,879.239 | 5,421 | 120,470.745 | 0.04500 |
| STONE | 4,499.341 | 4,999 | 51,306.988 | 0.09743 |
| IRON | 4,562.298 | 5,069 | 10,883.095 | 0.46577 |
| Total | 23,682.006 | 26,312.381 |
Asset price changes
| Asset | Initial price (01.04) | Price after 5 weeks | Change | Change % |
|---|---|---|---|---|
| VOUCHER | 35.58400 | 27.61209 | -7.97191 | -22.40% |
| GRAIN | 0.01944 | 0.01812 | -0.00132 | -6.80% |
| WOOD | 0.06310 | 0.04157 | -0.02153 | -34.12% |
| STONE | 0.09417 | 0.10533 | 0.01117 | 11.86% |
| IRON | 0.49252 | 0.49672 | 0.00420 | 0.85% |
Currently, only the price changes of STONE and IRON are positive, but thanks to the multiple transactions and balancing, we don't have such a huge loss.
Portfolio Status
| Market | Investment | DEC value | Asset value* | Total DEC value | Profit | Profit % | Percentage |
|---|---|---|---|---|---|---|---|
| VOUCHER | 10,512 | 4,743 | 4,269 | 9,012 | -1,500 | -14.27% | 20.10% |
| GRAIN | 10,053 | 4,692 | 4,223 | 8,915 | -1,138 | -11.32% | 19.88% |
| WOOD | 10,300 | 4,714 | 4,243 | 8,957 | -1,344 | -13.04% | 19.97% |
| STONE | 9,498 | 4,707 | 4,236 | 8,943 | -555 | -5.84% | 19.94% |
| IRON | 9,631 | 4,745 | 4,271 | 9,016 | -616 | -6.39% | 20.11% |
| Total | 49,994.387 | 23,601 | 21,240.9 | 44,841.9 | -5,152.487 | -10.31% | 100% |
* Asset value = 0.9 x DEC value
Summary: Although there were massive price changes, we only have a -0.31% loss above the initial -10%. I'm still curious 😉
Thank you for reading this!
Peter
Nice work, keep on stacking. I think land resources will be very important when the building update comes out.
I hope so 😅
Hey I love your post, can you get in touch?