So, I’m very new to yield farming, and I decided to take advantage of the new HoneySwap farm. All the APRs were looking pretty good, and are still looking good. And to get more rewards, I decided to go for the xComb-xDai LP and staked the tokens. I was doing fine until xComb price started plummeting and now my stake has lost a huge value. And the rewards are not enough to cover the loss. What’s worse is I locked my tokens for a long time. I know about impermanent loss, but I never expected it to happen this quick. I’m assuming things will get better if more people add to the pool and worse if others left the pool.
So, my question is, what happens to those locked tokens when the price of Xcomb drops maybe like 90%? It loses its value, right? And there’s a high possibility of losing all and finally coming out of the pool with noting? And even the rewards become less and too small to cover the loss. Only those that were able to get out of the pool sooner will probably gain or have less loss. So, this is how it works, get in and get out quickly?