MOON Distribution Happening Soon: DCA into Liquidity

Liquidity is needed for MOON to grow

MOON has finally reached ~500K of liquidity in a single liquidity pool. This might seem like a lot, but it is near the bottom that many low-cap investors require to invest in a project. Right now ~$10,000 buy or sell will cause the price to increase or decrease 2%. This is still not great and the higher the liquidity, the more can be purchased without a large price movement.

We have reached a point where new liquidity has really started to slow, even with incentivized liquidity pool. Most of the increase in liquidity in the past two weeks has been a result of the price of MOON and ETH increasing, not due to new liquidity being added.

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Sushi MOON/ETH liquidity pool TVL

DCA into liquidity each distribution

The words "impermanent loss" have been thrown around in this sub more in the past month than in the previous 2 years. If you add a small amount of liquidity from each distribution it essentially locks in some profit if the price of MOON decreases. If the price of MOON increases it essentially sells some of your MOON for ETH, forcing you to take profits. This is a method that can be used to sell small amounts of a coin as the price increases greater than ETH and protects your investment to some extent if ETH increases more.

A larger liquidity pool will give MOON more room to grow, increasing the value of your MOON not in liquidity

There is a solid chance that if you do not provide any liquidity you might have a greater value of crypto at the end of the day. The 40% to 50% rewards that the liquidity pool pays out do a good job of helping take some of the sting out of providing liquidity. The fact remains that you are providing liquidity, not to make money off of the incentivized returns, but by making MOON more attractive to investors and providing liquidity for them to use to buy into MOON. A greater liquidity pool also decreases the impact of MOON farmers that sell after every distribution.