Popularity pool, trading currency pairs and API users

Liquidity pools are quite popular in the digital currency circle and support decentralized exchanges.

In DeFi (decentralized finance), smart contracts are used to manage part of the commissions obtained from liquidity token exchanges.

Unlike the order records used in traditional exchanges, the Automated Market Maker (the Automated Market Maker) executes transactions and meets user needs by keeping prices on par with market prices.

Find out more about Wisebitcoin

How does the liquidity pool on Wisebitcoin work?

Liquidity partners will receive corresponding returns based on their contribution to the investment portfolio.

When they deposit, they can receive a commission from the pool of tokens, and investors can return the tokens and withdraw a certain percentage of their total assets and transaction fees for liquidation.

The first liquidity provider determines its initial price.

This is to ensure that no one takes the risk through the difference between arbitrage and market prices.

We encourage all investors in other capital pools to invest the same amount of two tokens in the capital pool.

In this case, no other bookkeeper is needed. Just need enough liquidity.

The user API of digital currency transactions conducted on Wisebitcoin is that you can exchange algorithms and exchanges.

The functions of the API index have been extended to the following categories:

  • Download market data and update the data in real time
  • Place an order for a transaction or cancel a transaction
  • Check account balance and check transaction status

API makes it easier to place orders, track price fluctuations, and make data to make investment decisions.

With better data and more convenient investment tools, investors can more effectively invest funds in investment pools, tokens or assets that best meet their needs, so that they can seamlessly deposit funds in different investment pools.

Invest in other assets. The more convenient it is for investors to invest, the more beneficial it is to the overall popularity of the Internet.

When investors trade the DAI to Ethereum currency pair on Wisebitcoin, its liquidity will be used. If each investor invests $100 in DAI and Ethereum, it means that there is a total of $200 in the fund pool, and the investor will get tokens proportional to the investment.

If an investor wants to exchange DAI for Ethereum, or vice versa, its value will also change. Ethereum’s liquidity may shrink, which may also happen to DA, but in general, the value of your token remains the same. Smart contracts can solve this problem.

Finally, when you withdraw money, you can get a percentage of the investment amount and the fees earned since then.

Signup for Wisebitcoin

Liquidity portfolio and trading portfolio bonus

The rate of return on the liquidity reserve depends on three factors:

  • Asset price at the time of deposit or withdrawal
  • The size of the liquidity pool
  • Volume

The smallest unit of liquidity reserve can have two tokens bound in a smart contract to form a trading pair.

To recover their investment through liquidity, investors must burn their capital pool tokens and exchange them with a portion of the liquidity pool, including handling fees.
4
The difference in management depends on the investors in Ethereum and the token pool.

The management of the difference between Ethereum and tokens is determined by investors in the pool, so the investment ratio may be more relaxed. Liquidity funds still play a very important role.

Find out more about Wisebitcoin

Advantages of liquidity pool

Ensure liquidity
There are many reasons why Wisebitcoin encourages its investors to choose liquidity pools. One of the most important reasons is to achieve an unlimited liquidity supply by eliminating the dependence of tokens on transaction volume. This means that traders do not have to compete with other traders, all they need is enough assets.
Automatic pricing
Order book transactions are based on centralized digital currencies and are executed in the same way as existing exchanges. The quotation matches the market price and requires manual adjustment. On the contrary, liquidity exchanges adjust prices through smart contracts. When several assets are traded, an order book will be generated, and when users create tokens under the lowest liquidity, they will not be generated.
Reduce restrictions on investors
Participating in the liquidity pool does not require any KYC or other identity verification. Anyone can form a new exchange pair anytime and anywhere to participate. The transaction fee ratio of the fund pool is increased in proportion to the investment amount. For example, when your share is 0.009% and the transaction fee is 0.3%, you can get a transaction fee of 0.009%.
Reduce transaction costs
Traditional digital currency exchanges generally charge maker and taker fees between 0.10% and 0.30%. Wisebitcoin only charges 0.07% maker fee and 0.07% taker fee. Lower handling fees can increase traders’ income and attract more traders to use the Wisebitcoin platform and obtain corresponding commissions.

Register for Wisebitcoin’s service

The risk of liquidity pools

Depositing funds in the liquidity pool is fixed financial management or locked position.

Investors can get income in proportion. If the investor deposits the tokens in the fund pool, the asset price rises, which may mean that the opportunity is lost.

The greater the change, the corresponding US dollar value may be lower at the time of withdrawal.

However, no matter where the funds are invested, price fluctuations and the opportunity cost of holding tokens are constant.

Since liquidity clusters provide investors with part of the mining costs, these benefits can offset the loss of income caused by price changes.

The liquidity pool is the basis of DeFi token trading.

Wisebitcoin welcomes new and old digital currency enthusiasts to participate in decentralized transactions and make full use of the power of smart contracts.

Find out more about Wisebitcoin