Depreciating mAssets?

I have a question regarding mAssets and why they seem to “evaporate” over time. I imagine I’m simply not understanding what I bought or maybe I don’t understand how farming works.

A week or so ago, I purchased 1.008106mAAPL. I then started farming with it (I guess, technically I staked mAAPL-UST LP).

I admit I don’t fully understand the conversion process that happened here (where my 1.00831 mAAPL became 11.635774 mAAPL-UST LP), but regardless, on my Mirror finance page I noticed that the mAAPL that I supposedly own seems to be diminishing over time.

I started with 1.00831, but this morning I noticed the page was stating I only could withdraw 0.991911. Now, at the time of this writing, it’s down to 0.991088.

I was under the impression that purchasing an mAsset was simply like buying an equity. You bought it, you now own it. But, with the added benefit of being able to yield farm from it. Clearly, I don’t understand something.

Can someone help me better understand what exactly I’m doing by “staking” it to farm yield? Am I essentially relinquishing my shares to convert into MIR over time or something?

Thank you in advance.

You need to understand how Liquidity Pool works (google it). And when a price of an asset goes up, you will have less of it but more of UST.

What you’re experiencing is referred to as impermanent loss. Because you pooled the mAPPL with UST, and mAPPL went up, it rebalanced your position some. You should have a good understanding of this before becoming an LP.

The 11.635774 LP tokens represent your position in the the mAPPL-UST farm. You will need to withdraw those when you want to close your position out.

This is exactly what “impermanent loss” is. There are two assets in the “staking” pool you’re investing in. The pool is using an algorithm to trade them back and forth, sometimes there’s more UST and sometimes there’s more mAPPL, depending on who trades with the pool.

Check out this video I created about it, people seem to really appreciate it: What is Impermanent Loss in Crypto? (Animated + Examples) - YouTube

The crazy number from mAsset to LP token difference is due to how the pool was set up. Sometimes 1 mAsset = 1 LP token, other times it is different, but it always represents your ‘portion’ of the pool. So if you deposited $500 worth, and the pool is $5000 total, you’ll always have 10% of ALL the LP tokens that are out there.