What happens to those who have locked their LP tokens?

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?

Not necessarily, I would say that it is normal for the entry price of a token to change to stabilize, then, imagine that the price of xComb remains at 50, at the end of the locked period it is most likely that your rewards will have overcome losses.

Similarly, there are also chances that the price of xComb will rise again.

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That isn´t impermanent loss, that is simply price change. Impermanent loss happens cause the price from the pair increases less than if you just hold the tokens separately.

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Yes, I know the price of xComb which is dependent on many factors, will stabilize soon. Or even get worse and drop more. Well, I get it. Fingers crossed! I hope the rewards will be enough to cover the loss, especially for those who locked their tokens. As a newbie, I’m still getting to know more about yield farming and all, so I’m just trying to understand certain things. Thank you!

if xComb keeps to the 60-70 ish it will go fine

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Oh, it isn’t impermanent loss? Okay. I’m just new to all these. I thought impermanent loss occurs as a result of price change.

it is just that the pairs also fluctuate, half less if you are pairing with a stable-coin like xDai

IL happens most when one token of a pair loses lots of value. IL only becomes permanent loss if you withdraw the $. Otherwise the IL can reverse as a token regains value. So being locked in right now still allows time for the price to go back up. I believe it will. I am in the same boat.


Not really, it can also happen when it pumps a lot. It is based on the price you bought at and the current price.
The more wider the gap is the bigger the IL is.

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Thanks. This is a very good content.

I’ve watched a bunch of you tube vids on IL trying to grasp the complexities and tbh 90% of the movies were awful and full of errors. This one is among the few decent ones. I enjoyed rewatching it today. Pretty shocking how serious IL can get. In the worst case scenario you end up with 99.99% of the devaluing token and dust on the other side (the valuable token). Then if the bad token’s project fails and goes to zero the investor loses everything. But I believe most larger farms try to overcome the IL with extra bonus payments and apy. Now I try to only farm pairs that I predict will be similar in volatility/growth. It is the difference in rates of appreciation which create the IL. If I can’t find pairs that appreciate similarly then I will use stablecoins for half the pair. It is probably less stressful to always farm with 1 stablecoin but sometimes you just gotta hold the crypto. Using stablecoins eats up capital that can buy more eth and btc. I am a novice and all this is not financial advice, just what I do. So for the new tulip farms I went with the hny/agve pair because I figure they will be relatively close in rates of growth. I also aped into the xComb/xDai pairs which I now regret doing. Early in my crypto journey I made the decision to hold 1/3 btc 1/3 eth and 1/3 assorted others. Somehow I can’t stick to this rule and instead ape into stuff like xComb. But I digress…

One thing for sure is rates of return are very fluid. Unless going into an explicit fixed rate product on a bigger exchange you can count on change coming. Overall the biggest enemy to my portfolio is me trading. The more I leave it alone the better I do. Read this somewhere and darn if it isn’t true. We are our own worst enemies so what happens to those who;ve locked tokens? Well they are probably safest and will have a nice bonus coming in 120 days. That is 120 days in which you can not lose your investment by error, hack, markets. It is still super early for farms (and xComb token) and I think we will be happy as the weeks roll by.

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Nice!! I have 100% of my stake in xComb/xDai pairs locked for 120 days, which I’m now regretting too, frankly. It’s kind of a pain to be losing dollars every minute, haha. And with the dropping rewards percentage and dropping price of xComb, the loss is always a step ahead of the rewards. The price of xComb doesn’t look like it’s going to be stable soon. Hopefully, it will. It’s my first time in a liquidity pool and also staking, so I’m just trying to figure out how things work. I mostly just held crypto. Thank you for sharing your opinion.

You’re really not “losing dollars”, price is just moving as it always does. If you hadn’t locked your tokens would you have sold as soon as price moved a few percent? Surely not. My advice is chill, forget about the tokens and try not to look at the price. In 120 days you can judge whether it was a mistake or not, until then no point worrying.


It’s important to remember that xCombs value isn’t just tied to the people trading it; it will also start to capture the value from Honeyswap exchange fees. The more people use Honeyswap the more tx fees will go to xComb holders. So now would be a great time to spread the word about how great Honeyswap is…not just because it’s true, but because it will be good for xComb holders and all other projects that use HS. This is a pretty powerful network effect.

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Yesh all these excellent points above. And let us not forget the impending launch on Polygon. Honeyswap is taking the sidechains by storm right now plus Hivecraft launch, and eventually public will be able to buy honeyplots there…There is a lot of growth right now which is also going to lift the value. Our job now is to make a couple posts everyday which talk about 1hive. Telegram, twitter, reddit, Instagram, Tiktok and more I’m not even aware of. We are our own marketing team. Get active with some praising posts and watch number go up and to the right :heavy_check_mark:

Don’t shill. Explain.

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