Why is the Trade.io’s Liquidity Pool such an attractive feature for its users?

in #cryptocurrency5 years ago (edited)

Trade.io, Cryptocurrency, OTC Trading, Decentralization, Blockchain Technology, Finance, Crypto Exchange

Source

Introduction


As some readers might probably know, Trade.io is a crypto exchange that due to the incredibly high competition there is in this particular sector, where it is easy to find exchanges with all sort of innovative elements, is always looking to go one step further than the competition with the hopes of offering its users the best features they could possibly find on a crypto exchange.

Recently, they launched their own OTC Trading Desk where people, especially big investors that tend to move large quantities of assets, can buy and sell cryptocurrencies without affecting the price used in the exchange’s regular transactions.

However, Trade.io also has another interesting feature they call “Liquidity Pool”, which is basically a sophisticated way of handling both the tokens of the exchange itself, and the tokens of its users.

How can users benefit themselves thanks to the Liquidity Pool?


The first thing to understand is that Trade.io, just as many other exchanges, has its own token which they decided to name as “TIOx”, and it is through this token that people will be able to access the Liquidity Pool.

This works on a similar way to how any financial institution handles its available resources, these institutions usually do operations like investing or making loans, with the goal of receiving a revenue in the form of the appreciation of the assets, or simply by receiving interest on the loans they made.

Trade.io, Cryptocurrency, OTC Trading, Decentralization, Blockchain Technology, Finance, Crypto Exchange

Source

In the case of Trade.io, the resources on the Liquidity Pool are going to be used to do several operations like “make markets and provide liquidity” Source and the users will receive a daily interest in the form of cryptocurrencies depending on the amount of TIOx tokens they have in the pool. The cryptocurrency in which users receive their interest might change, and Trade.io will send the payments using the one with excessive holdings for that particular day, which means, sometimes these payments could be done using Ethereum, and the next day Trade.io might use NEO, to give you just 2 examples with common cryptocurrencies.

One of the reasons why it might be attractive to users, is because everything is done on a daily basis, this not only means interests are paid daily, but also people will be able to enter or exit the pool any day they wish, besides, Trade.io will be constantly contributing to the pool by adding 50% of its entire revenue into the pool, so it is expected for it to get bigger as time goes on.

Something that users will surely love is that according to Trade.io “If the exchange makes a loss, nothing gets deducted from your wallet” Source which means the tokens belonging to users are going to be protected, and the risk will consist in the price variations of the tokens they loaned to the pool. It is clear that if this way of managing tokens turns out to be successful, the number of interested people will end up increasing with time, and the price of the TIOx token could also increase as a result of the higher demand.

This is an opportunity for users to make use of their available capital and leverage it the same way exchanges always do with their resources, and so far, the results have been spectacular, in the following image we can see the pool has distributed more than $90,000 to the participants:

Trade.io, Cryptocurrency, OTC Trading, Decentralization, Blockchain Technology, Finance, Crypto Exchange

Source

Once a user receives his daily interests, it will be possible to automatically add it to the pool, and increase his participation to receive a higher interest in the future, or as mentioned before, completely removing the tokens from the pool will also be extremely easy to do.

In case you are interested in seeing a live presentation of this feature, just a month ago, Trade.io released a new video where they share a general overview so the public could see the Liquidity Pool’s interface, and how to operate on it. The video in question is this one:

Summary


Trade.io in their plan to empower their users as much as possible, is creating a Liquidity Pool where users can loan their TIOx tokens (and other cryptocurrencies as long as 2,500 TIOx are included into the mix) and then these resources are used by the exchange to generate a revenue, which is distributed on a daily basis to the users according to the amount of tokens they loaned in the first place.

This way, users can rely on the exchange’s activities to receive a passive income, with the added benefit of being able to retrieve the loaned tokens at any day the user wishes, there are however, a few conditions to avoid malicious users from entering and exiting the pool as a strategy to destabilize it, but once a user wishes to exit the pool, he should be receiving the tokens usually on the same day, and always in no more than 48 hours.

If you wish to know more about this project, I added a few informative links:

· Project Website: https://trade.io/en

· Products & Services: https://trade.io/en/liquidity-pool

https://trade.io/en/otc-trading

https://trade.io/en/ico-services

https://trade.io/en/investments

https://affiliates.trade.io

· Trade.io Team: https://trade.io/en/about

· Trade.io Story

· Facebook: https://www.facebook.com/trade.io/

· Medium: https://medium.com/@trade.io

· Twitter: https://twitter.com/TradeToken

· Instagram: https://www.instagram.com/trade.io_official/?hl=en

DISCLAIMER

The information contained within this post shall not be taken as a financial advice. I am not a financial advisor and none of your investment decisions should be carried out based on any information presented here. You can lose all of your money by investing. The information presented in this article is for educational and entertainment purposes only.

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