PSA: Be careful where you put liquidity in different pools

This a Public service announcement!

For those providing liquidity be careful!
We have some deeply unbalanced pools, and I just got humbled by one that had a bot watching it.

The Treasury Department is working on a Liquidity Consolidation Proposal as a strategy to tighten up liquidity for BANK across Eth, Polygon and Optimism.

We were looking at and trying to re-balance a Uniswap pool on polygon that had BANK/WETH that was out of sync with the larger market pricing because of shallow depth.

I, not thinking fully, provided 274k worth of BANK liquidity at full range, and the second the liquidity was added a bot kicked off a swap exiting with a very favorable trade, although with very high slippage.

Good news, the pool is now rebalanced!
Bad news is I took a huge loss (due to impermanent loss) on the trade, and the pool was drained of the 274k BANK.

Just a reminder to be careful out there, with the different pools.
Eth is a dark forest.


Hello Fren, i was in talks with Shapeshift and maybe we can use another liquidity pool. Or try to deposit the liquidity in a layer 2, with less slippage like Rhino?.
I appreciate that you made this for the community

Thanks for the PSA @Icedcool also sorry about your loss. That sucks.
Going off what you said about ETH being a dark Forrest- is there no way to create a safe space within that Dark Forrest? For those that don’t want to or can’t be exposed to losses from scams and trickery. These types of potential losses are what keeps most from even wanting to learn about crypto, let alone adopt it.

1 Like