Why I Switched from a 45% APR Liquidity Pool to 28% NIBI Staking

Hello friends!

In this post I am sharing one of my experiences and learning on my Staking journey into the web3.

Not financial advice — just a lesson I learned the hard way. 

I recently added ~$1,000 to a small liquidity pool (SWAP.HBD:CENT) that showed a 70% APR. After my deposit, the APR dropped to 45%. I was still earning about $1.22/day — but not the $2.00 I expected. Why? Because **my own deposit diluted the rewards**. In small pools, your capital can significantly lower the APR for everyone — including you.

So I moved most of my funds to  NIBI staking: - Staked: $1,635.95 - Earning: ~$1.26/day - APR: ~28% (stable, from network inflation) - Risk: Very low (no impermanent loss) - Lock-up: 21 days to unbond 

 At first glance, 28% looks worse than 45%. 

But here’s the catch:

 ✅ NIBI rewards are predictable 

 ✅ No risk of impermanent loss 

✅ My deposit doesn’t reduce my own yield 

✅ Totally passive — stake and forget 

Meanwhile, the LP: - Has volatile APR (can drop if others join) - Exposes me to price divergence risk - Requires more attention 

Lesson learned: Don’t chase headline APRs. A lower, stable yield with less risk often wins long-term. Now I keep most of my capital in NIBI staking and only a small portion liquid for flexibility. 

 Again — this isn’t advice. Just my experience. Always DYOR! --- A extended version:  https://medium.com/@aljif7/a-new-defi-lesson-learned-why-my-70-apr-lp-become-45-8c6dd0bffa09