The new version of BABYDOGE liquidity pool (Automatic Market Maker (AMM) Mode) has been officially launched, 50% of the trading market fee revenue will be newly invested in the liquidity bonus pool, Taker and Maker fees are adjusted at 0.3% with immediate effect. The current BABYDOGE pool liquidity mining yield is up to 397.7%, welcome to the experience.
Click on the link to earn revenue: https://www.gate.com/en/liquidity
BABYDOGE trading links: https://www.gate.com/en/trade/BABYDOGE_USDT
To further enhance the user experience, Gate has launched a new version of its liquidity pool (Centralized Automated Market Maker (AMM) service) on August 1st, 2021: allowing most new and non-mainstream coin markets to gain the same liquidity advantages as Uniswap, and allowing users to enjoy a low-cost and high-quality user experience on a centralized platform. Gate will continue to add the necessary support so please pay close attention to our announcements.
The rules for the Automated Market Maker (AMM) model market are as follows.
1) Taker and Maker both use a fixed 0.3% commission (tentatively in line with Uniswap and will be adjusted according to the needs of both market counterparties)
2) A fixed percentage (e.g. 50%) of the trading market's commission revenue will be automatically bought into GT through the open market and put into the liquidity bonus pool (AMM Reward Pool)
(3) Anyone can become a liquidity provider (LP) by providing liquidity and receive a fee reward from the liquidity pool and a GT reward to be put into the liquidity bonus pool
(4) Liquidity providers provide liquidity to the market, but need to bear the inconstant loss (for example: if the market price doubles, the inconstant loss is about 7%, and the inconstant loss disappears if the market price falls back to the original point)
5) The liquidity provider can receive the bonus pool reward or withdraw at any time
Click to view the new liquidity pool: Gate will upgrade some markets to automated market maker (AMM) (new 50% platform trading fee bonus)
Additional Reading:
What is the Automated Market Maker (AMM) mechanism?
Through the automated market maker mechanism, the liquidity provider
(LP) can earn trading fee revenue by providing liquidity to the market.
The order takers offer fees to the LP in exchange for lower slippage.
Through this mechanism, the market needs of both parties are well
matched, allowing LPs and takers to get what they want.
What is an impermanent loss?
It refers to the loss of capital due to spreads that occur when the
price of a digital asset changes after an investor has deposited in the
automated market maker liquidity pool. Irrespective of how the price of
the digital asset changes, inpermanent loss will occur and the larger
the spreads, the larger the loss.
What is liquidity mining?
Liquidity mining is a method of acquiring more cryptocurrencies by
pledging cryptocurrency. It is a new trend in decentralized finance
(DeFi) that allows cryptocurrency investors to fully utilize their
crypto assets and receive higher returns. Anyone can participate in the
eco. Simply put, this means locking in cryptocurrencies to receive
rewards.
What are the benefits of providing liquidity?
Users can earn market making dividends by adding liquidity to the
market. By adding liquidity, funds are injected into the pool, and the
fee revenue earned from automatic market making in the pool is
distributed to the liquidity provider in proportion to their share of
the pool. Liquidity can be accessed in real time without any commission
charges.
Science: From Market Maker to Liquidity Mining, How Important is Liquidity?
Why is Gate Liquidity Mining Great for Low Volatility?
Science: What You Need to Know About Investments in Liquidity Mining Products
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August 9, 2021
