Trade.io | what to know about liquidity pool
sourceTrade.io is a blockchain set-up by an experienced team of professionals. Trade.io is a cryptocurrency exchange that offers special crypto services like ICO Consulting, liquidity pool, Angel investments and many more services that are adding advantages to the blockchain ecosystem because through the ICO consulting service the best projects emerge into the crypto space and the exchange. Clients and investors can earn a percentage of the profits of the platform as passive income by taking part in the liquidity pool.
Passive income implies the continuous growth of your investment capital without any direct effort from you.
WHAT THEN IS LIQUIDITY POOL?
Liquidity pool is referred to a pool of finance that is used to facilitate financial services on the trade.io exchange such as providing an increased volume of liquidity in the market and also loan to margin traders on the exchange. L.P. closes its trading sections daily and distributes profits into the wallet of members of the liquidity pool that initially loaned their financial assets to the pool.
After the launch of the Liquidity Pool on October 9th, 2018, interested individuals can loan a percentage of assets to the LP and start earning daily.
If the exchange incurs any loss, nothing will be subtracted from the wallet of Investors. You can retrieve your invested tokens any day you choose to leave the pool, your funds are not tied down by the liquidity pool.
Trade.io has its own native currency called the Tio. This token determines if you are eligible to participate in the liquidity pool. Trade.io has different streams of revenue which the liquidity pool earns from, they are;
- Tokens acquired from ICO/airdrop campaigns
- FX platform (Yet to be launched)
- Consulting Services
- Angel Investment
- OTC trading desk
HOW TO BE A PART OF THE LIQUIDITY POOL
Interested investors need to own at least 2,500 TIO to be a part of the liquidity pool. The good thing is that, there is no limit to the number of participants on the L.P. It will serve as an advantage to members of the pool because the more the number stakeholders on the platform the more reward ratio to be distributed. The only limitation is that the volume of TIOs in circulation is limited and is likely to cause an increase in the price of the token, which will in turn lead to deflation; the reduction in the value of TIO. Investors who staked their percentage of assets will be eligible for each 24-hour distribution cycle.
Investors can choose to leave or join L.P. daily during the exit time. I will drop a link below this post for interested investors to register and become a part of the L.P.
HOW THE POOL GENERATES INTEREST FOR MEMBERS.
These interests are generated from the accrued assets initially donated as loans and exhausted for LP trade purpose. Therefore, the profits accumulated from the donation to the pool are evenly distributed. L.P. trades with these loans, then the profits will be equally distributed among members. And this is totally dependent on the volume of accumulated assets donated for utilization; this literally implies that the more the volume of loans donated the more profit is generated after usage.
As soon as these loans have been secured, 50% of the profit realized will be distributed as various assets that were acquired from the used loan assets such as ETH, BTC, and other digital assets.
INCOME PAYOUT
The distribution of the daily profit depends on the digital asset the profit has been made on during the trade; it will automatically be credited to the participant's account on trade.io asset balances. Note that, the platform has the ability to pay their investors in whatever currency they choose to.
IN CONCLUSION
New cryptocurrency exchanges emerge daily, therefore trade.io has serious competition. The harder the competition, the lower the profit margin. Trade.io's game plan is to administer some value-added services that most exchanges don't provide, which will draw the attention of good projects headed by a brilliant team to the exchange.
It is important for you to know that the L.P is not immune to losses, but there are strategies in place to ensure that the losses do not affect the initial deposits of the investor.
Thank you guys for reading, I will be back again to bring you more and more goodies from trade.io. see the links below for more information on trade.io and their services.