Trade.io - All you need to know about The Liquidity Pool(LP)
What Exactly Is The Liquidity Pool?
It behaves in the same way as a lending pool.Participants will use their TIOs as an access
key to the LP. After the Liquidity Pool has been launched,the Participants can loan their assets to the LP. Until the time the participant exits the pool, the assets will be converted and held in USD. The participant will have the option to contribute to the LP with other assets,such as fiat and other cryptocurrencies in addition to TIO,which is required to access the LP and may be used for the lending. Trade.io will pay back interest to reward these clients for their participation in return for the loaned assets that are contributed to the LP. Also when participants choose to exit the LP they will receive their original contribution(s) back.
- It is important to understand that the benefits from the liquidity pool are not related to the Trade Token(TIO), which is only the key to access the pool,but only to the amount of assets which are put in the liquidity pool.
This is what the pool will consist of:
Trade.io will provide the seed capital of up to $50million USD
Trade.io will be the frontline risk capital
50 million reserve Trade Tokens(TIOs) to further cover participant’s risk and provide
additional liquidity.
The balance sheet of TIOs and the customers’ balance sheet of TIOs
Clients may be able to lend various other assets,including cryptocurrencies and fiat
currencies.
How Can Join The LP?
A Minimum of 2500 Trade tokens(TIO) will be needed by participants to be eligible to join.
In the members area of the TIO Exchange there would be a ‘JOIN LIQUIDITY POOL’ button available.
During the appointed entry/exit time,Participants can choose to join or leave the LP daily.
How Does The Pool Generate Interest For The Participants?
Participants will receive distributed interests in form of various assets that might have been generated from the utilized loaned assets in the L.P. on the trade.io exchange platform. Depending on the accumulated assets during that days LP loan utilization, the assets to be distributed might include alt coins, BTC and ETH.
50% of the funds generated from the operations of the utilized LP assets will be distributed to the participants in the form of interest.
Through the balance sheet associated with the loaned value of the TIOs and assets in the LP, participants lend their TIOs and other assets to the LP for the company to make markets and provide liquidity
Why Is My Interest Is In Other Cryptocurrencies When I Loan My crypto And Fiat?
Rather than crypto and fiat lent to the LP, Participant(s) will be paid in crypto used by the LP, this is as a result of the company being able to only generate specific currencies/assets during that day’s utilization. Since there is only a finite supply of TIO and the exchange/distribution of fiat is time consuming and inefficient interest will not be disbursed in TIO or fiat. Our exchange occurs in multiple cryptocurrencies and therefore we will pay our lenders in the assets in which we have excess supply.
How Do I Benefit From The Pool
Your return is based on the following:
How much you contribute
How many other people are in the pool
Your tier level
In the instrument that the company has generated for that day, participants will receive payment daily!
Without any compatibility issues your wallet will be credited with your funds
Whatever is generated that day by the LP
What Are The Risks To Joining The Pool?
The high watermark is to protect investors-meaning no distributions will be made until
that high watermark has been reached.There is minimal risk to the participant.If the exchange makes al oss,nothing will be
deducted from your walletThe opportunity cost by locking in your TIO’s and other assets to the LP for 24hours
Insolvency of trade.io
To learn more about trade.io visit the links below;
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