🌊 | Liquidity Pools
Liquidity Pools on EasyX consist of tokens that have been locked by smart contracts at the request of their holders. However, unlike traditional liquidity pools used to provide trade liquidity, on EasyX, these pools operate under a trustless bankroll model.
In this model:
Pools earn a percentage of the fees collected from traders.
Pools are used to pay out profits to traders who have executed successful trades.
This approach is a well-established practice in both the DeFi and cryptocurrency gambling ecosystems. As a liquidity provider, your earnings depend on the fees generated and the overall profit and loss of the traders who use the specific trading pair associated with the liquidity pool.
This creates a dynamic and interconnected system where the rewards of liquidity providers are influenced by the success of the traders using the platform.
Make it Easy:
• When traders are profitable, the pools pay out the profits and suffer unrealised losses. • When traders are losing, the pools earn the collateral that is "lost" during the trade. • Pools always earn a percentage (fee) from every trade, regardless of the outcome.
Please note, providing liquidity can entail a risk of unrealised loss in assets if trader profitability exceeds the fees earned by a pool.
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