Beating the Bear Market with Trade.io Liquidity Pool

in #tradeio5 years ago (edited)

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One thing that wealthy individuals have in common is the ability to make their money work for them. It is pretty common knowledge that interest rates on traditional savings accounts are horrible these days. Likewise, stocks and mutual funds often have a high point of entry that investing becomes a barrier to many individuals.

As it gains traction and recognition in other areas, Cryptocurrency is also offering a new frontier in the landscape of passive income. Imagine being able to make an initial investment in a token and then just sit back and earn interest on that investment.

Trade.io's Trade token(TIOx) and their Liquidity Pool allows you to do just that.

Background

Trade.io is a cryptocurrency exchange that also offers ICO and investment services in addition to their Liquidity Pool. Initial registration is fairly simple though their KYC process is one of the most thourough I have read about. They offer accounts for individuals and instituions both requiring a government ID, selfie with ID, proof of residence, and several account specific forms. Additionally, institutional accounts require a proof of cooprorate entity.

Due to the fact that Trade.io complies with the Office of Foreign Assests Control (OFAC) sanctions, there are some countries that are barred from creating an account. Among these are the US, Croatia, Venezuela, and Switzerland. For a full list I encourage you to check out their FAQ page

If you are lucky enough to live in one of the countries that can utilize Trade.io's exchange, here are a few more of the details about the service:

Liquidity Pool

Liquidity Pool Dashboard


Most other cryptocurrency leasing platforms I have seen only support the main token of the blockchain that they are built upon. Liquidity Pool breaks from that tradition by paying out their interest in excess cryptocurrency from that days profits. The cryptocurrency that is distriubted is totally at the discretion of Trade.io, so one day you could get BTC and the next you could be paid in ETH.

As you can see from the graphic above, as of April 19, 2019 the total amount of distributions to date equals over $250,000.00 USD.

The process to get started is pretty straight forward... Once you have a Trade.io exchange account, you can then move your cryptocurrency assets into the exchange and trade for the TIOx token. The Trade Token(TIOx) then becomes your access key to enter the Liquidity Pool.

Once you have entered your tokens into the Liquidity Pool, interest is paid out via a formula that is based on a tiered structure and the amount you have contributed:

(Return of Utilized TIOx × 50%) × (My Loaned TIOx / Total Pool TIOx) × Tier Multiplier % in chart.

The tiers and their respective multipliers are pretty straight forward:

TierTIOxMulitplierReturn
1250010%1.19%
2500020%2.37%
3750030%3.56%
410,00040%4.74%
512,50050%5.93%
615,00060%7.11%
717,50070%8.30%
820,00080%9.49%
922,50090%10.67%
1025,000110%13.04%

They even have a potential return calculator about midway down their homepage

As you can see from the chart above, the minimum TIOx you have to submit to enter into the Liquidity Pool is 2500. Here is the exchange information for a BTC to TIOx exchange as of 11:28AM on 4/23/2019. It should give you a pretty good idea of how much BTC you would need to reach the minimum requirement for the Liquidity Pool. Rough calculations tell me the TIOx tokens are going for about $.09 USD a piece.

Trade.io BTC/TIOx exchange


Final Thoughts

The Trade.io Liquidity Pool pays you back interest in return for your contributed TIOx tokens. Fifty percent of the funds generated from daily operations is distributed back in the form of interest. If they do not make a profit for that day then no return will be distributed. When you leave the Liquidity Pool, you receive your principle TIOx back. Trade.io has a high water mark established to ensure payment on positive performance. Additionally, your principle loan amount is always maintained, even if the exchange makes a loss.

I personally feel like the Liquidity Pool via Trade.io is a fantastic opportunity. My biggest dissapointment with the platform is that I live in a country where it is not accessible. The strict KYC process they have along with the unavalability in many countries might be a hinderance to some. I understand why those limitations are in place, but it is still quite the disappointment.

Their site does say that getting started is as easy as entering an email address and setting a password. Depending on how you read it, this could imply the KYC is not required. If that is(or is not) the case, it might be a good idea for them to add a sentence to clarify. Is KYC only necessary if you are withdrawing fiat? etc.

If you reference the dashboard I posted an image of earlier, you can see that there are a total of 746 Liquidity Pool users. Those 746 users have a sum of 42,220,679 TIOx tokens locked into the system. That seems like a relatively low number to me. Given the exeptionally inexpensive cost of the TIOx token now would be the perfect time to get in on this opportunity. Now is the perfect time to establish that passive income stream for yourself before the price goes up.

DISCLAIMER
This is not financial advice, nor a guarantee or promise in regards to any result that may be obtained from using the above content. The information provided here is for informational and entertainment purposes only. It should not be considered as financial and/or investment advice. No person should make any kind of financial decision without first consulting their own financial adviser and/or conducting their own research and due diligence.

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It does look very interesting but I suspect I could not get onboard there even if I wanted to since I am living here but my home country of New Zealand is not on the list of blocked countries so I may mention this to a couple of friends there

Very cool. Hopefully it will be something that they can take advantage of!

Let’s see I shot off an email to them

Son of a b**** for me... live in USA so can't use:(

I know right! That was the first thing I checked when I started working on this post. I was pretty bummed.

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