HOW UTILIZING DIFFERENT CHAIN LIQUIDITY POOL IN X0SWAP
As the trend of cryptocurrency has grown overtime. It becomes even more popular as the investors can earn more money by becoming liquidity providers. If you are into this crypto coin business, you will need a liquidity pool as the new way to facilitate assets trading to gain more returns and it will not get affected when the price in the market is decreased. How? In fact, when the token’s price drop or ascent, the system will regulate the amount of our tokens, so the total value will be the same. Here is how x0swap’s liquidity pool works.
However, what is the real concept of liquidity pool, and can it be utilized in different chains to broaden the investors’ trading experience?
What is Liquidity Pool?
To put it in a simple understanding, Liquidity Pools are pools of tokens which are locked away into a smart contract in a more efficient way while allowing investors to gain higher returns as they hold away their assets. By using the concept of liquidity pool, it provides liquidity to avoid increased price swings for assets that are held away. The good news is x0Swap is able to provide liquidity pool for our providers.
How Does It Work?
The idea of liquidity pool is this foundational technology which allows investors to throw their funds together in a big digital file. They can do anything with it in a permissionless environment and any investors can add up liquidity to it. Thus, liquidity pools are essential to gain more benefits as it automates the market makers to do yield farming, performing borrow and lend protocols, on — chain insurance, blockchain gaming, and more.
The Possibility to Utilize Different Chain in a Liquidity Pool
The cryptocurrency trading transaction was facing some barriers to entry for the newer market participants. This is a big challenge as the decentralized is now representing a bigger role in the smart economy of the future. Thus, the multi chain exists to solve it.
With the existence of multi chain, it is possible to utilize different chain in a liquidity pool for the smarter trading ecosystem.
How to Utilize Different Chain Liquidity Pool in x0Swap?
A Different chain means a completely different network. Just like you can’t use windows and ios systems at the same time, two blockchains are usually can’t be used at the same time as well. However, x0swap has an onboarding platform which allows a lot of digital assets to be onboard and allow for global interoperability without border restrictions as well as without prior agreed standards. In this way, providers can utilize different chain liquidity pools in x0swap. Below is the multi-chain solution at the glance.
