For an ecosystem to thrive, it needs to be self-sufficient. The same goes for our decentralized universe. Every galaxy within that universe contributes to everyone’s benefits and Dexvers Zero-G Pools are no exception.
What are liquidity pools and why a DEX needs them?
Simply yet vividly put, liquidity pools are ‘vaults’ where liquidity providers place their assets for users to trade them. Without liquidity pools, there would be no trading pairs and successful swapping on a decentralized exchange.
Some of you may wonder, what can liquidity providers gain from this? Are they giving away their assets? The answer is no. Their assets remain, but for a period of time - let’s say a year - their assets are practically communal.
For that effort, liquidity providers are rewarded with high annual percentage yields (APY) - the amount of interest earned during a year. Not only that your assets are being preserved, but you also earn money by letting others use your crypto assets.
While researching liquidity pools, you may have encountered another similar abbreviation - APR. APR measures charged interest, while APY measures earned interest. While APY takes into account compounding, APR doesn’t.
Now that we got that out of the way, let’s discuss liquidity pools on Dexvers.
Jump in our Zero-G Pools - we don’t have cookies but we have the next best thing - 200% APY!
Dexvers rewards both depositing your crypto into our pools, and creating new liquidity pools, with APRs based on market-driven token trends and project needs. Keep track of new pools and attractive APYs, and jump into the best-performing pools.
The task is simple - deposit your cryptocurrencies into our liquidity pools and receive rewards.
At the moment, it's possible to add tokens to the $USDC pool only. In order to obtain the APY, you also have to stake the amount added to the liquidity.
There are no limitations on cryptocurrencies, more precisely, no limitation on deposited crypto assets. However, if you decide to jump into one of our main pools, you can expect additional incentives.
APYs vary depending on when you create your pool or add assets into one - the sooner you join, the more you earn.
The timeline is crucial, so meet our 4-phased liquidity system
Phase I - in the initial phase, you can deposit and stake your USDC with an APY of 200%
Phase II - in the second phase, you can deposit and stake your USDC with an APY of 175%
Phase III - in the third phase, you can deposit and stake your USDC with an APY of 150%
Phase IV - in the last phase, you can deposit and stake your USDC with an APY of 125%
The next logical question would be - how does one join or create a liquidity pool? Rest easy, it’s actually quite simple.
Secondly, after you successfully open the app, take a look at the navigation bar, and click on Earn >> Liquidity Pools >> Add Liquidity.
A new window will pop up. Deposit the assets from your hot wallet by adding the token pair smart contracts’ addresses.
If you need any help or have any questions in the process, our customer support team is at your disposal.
Since Dexvers is still in beta (not for long though!), the app is not publicly available. However, our team will be delighted to give you a walkthrough and explain how to join as a liquidity provider in Phase I.
Disclaimer: The information provided in this post is not legal, accounting, or financial advice. The information should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies.