I  was rather thrilled when I got an activated egg as a prize from a contest quite some time ago, and decided to save it until I could get some Liquid Vermillion. when I managed to get some I used 2 vials of the ruinously expensive  L V to improve the grade. I  really wish I hadn't done so now... seeing what came out of the egg was a great disappointment...I hate to think what it would have been like if it had not been given the upgrades. 

I have  had much nicer Lykos without giving them the LV and won't repeat this mistake...in fact I may not waste the Liquid Deviance it takes to hatch the 5 hibernating eggs I have  gathered....Deviant pets are not so easy tgo get and wasting one for a poor specimen doesn't seem worthwhile.

The Beastie 

http://beastkeeper.com/pet/767649

I hope the one you've gotten from me will make up for it ;)

That's because it increases the chance, nothing more. A grade one just has a lower chance of getting good genes, and with how the Lyokos has started to be wide spread.

It'd seem like a waste now. If it was when the Lyokos were just introduced, I'd expect you different opinion, as you'd probably be trying to get a copy of all the genes, and a number with them to breed.

Amnaa Indeed it will...your one is far and above anything I expected from my egg. Thank you for selling her to me, am delighted to have her join my pack:}

Wireath  I wasn't expecting an amazing Lykos from the egg, but had hoped for one with not such nasty genes.

I have some fairly good Lykos... I bred the first GP Lykos in the game from my original egg finds. None of which had any  LD given to them,  but I  admit I was fairly lucky in that the majority of my first eggs  gave me Lykos with hardly any nasty genes, and thats probably why I was so surprised with the outcome of this one. I shan't breed from her as she doesn't have enough good genes to make it worthwhile, I am afraid this is one for the portal :}