Here are some details about the benefits and risks of the behavior of the initiative.
Benefits
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Cash flow might be a deep demand among most $LDO holders. Provide liquidity on Balancer LDO-ETH pool will allow you to make about 2% monthly return paid in $BAL. $BAL has a healthy tokenomics since they adopted veBAL model on April 7th 2022. IMO, $BAL is one of the most undervalued tokens, especially after the past weeks market collapse.
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Invest in the BAL-ETH pool and lock up for veBAL will allow you to share 75% of the admin fees collected by the protocol, along with other veBAL holders. As I have noted in another post, this will give you a 12.5% APR, based on the current and near past conditions. In addition, your veBAL will boost your LDO-ETH $BAL return with up to 2.5X power.
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Although I prefer you join this action by directly locking up your BAL-ETH lp token on Balancer and vote for LDO-ETH pool, there still have other options(bribe protocol, like Hidden Hand, Aura etc.). These bribe protocols may also bring you addition return.
Risks
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Price volatility. No matter how optimistic I am on the future of $BAL, there will always be a price valuation risk. Never take the risks more than you can afford.
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Impermanent losses. Provide liquidity on Dex will always face the risk of impermanent losses. Although there two pools are all functioned with an 80:20 weight mechanism, which could reduce the impermanent losses by 60%, compared to a normal 50:50 pool, the risk is still there.