💧Liquidity
Maximize your earnings by providing liquidity for Real Estate Tokens and ETH paired with stablecoins.
Providing liquidity is more than a support mechanism; it's a strategy to maximize your DeFi earnings. With the added stability of a stablecoin pairing and the fee-based reward structure, our Liquidity page equips you with the tools to optimize your returns and diversify your portfolio in the decentralized finance landscape.
Understanding Liquidity in DeFi
Liquidity refers to the ease of buying or selling assets without causing significant price fluctuations. In the context of decentralized exchanges, liquidity pools are created by users who deposit pairs of tokens. These pools enable smooth trading and help maintain price stability by ensuring there are enough tokens available for transactions.
Disclaimer: 3rd Party video for demonstration purposes only
The Stablecoin Advantage
All assets on our platform are paired with a . This structure offers two-fold benefits:
Reduced Volatility: Pairing with a stablecoin like DAI inherently reduces the asset's volatility, making it less prone to sharp price fluctuations.
Earning Potential: By providing liquidity in a stablecoin pair, you not only stabilize your holdings but also earn transaction fees, offering a dual advantage over merely holding the asset.
Benefits of Providing Liquidity
Enhanced Earnings: As a liquidity provider, you earn 0.15% from the 0.3% transaction fee on every trade made using your liquidity. The remaining 0.15% goes to Ryze, ensuring continuous platform development and growth.
Active Participation: We're a community, and you can play an active role in ensuring a robust ecosystem, smoother trades, and improved price stability.
Broadened Interoperability: With our blockchain integration, the liquidity you offer can be seamlessly accessed by other decentralized protocols, paving the way for various earning opportunities.
💡 Provide liquidity and boost your earnings
Pair Selection: Define the asset you'd like to pair with a stablecoin, such as one of our Real Estate Tokens or ETH.
Contribution Amount: Specify how much of each asset you want to deposit. The system will determine the ratio based on the existing pool's state.
Blockchain Confirmation: After setting your preferences, confirm the transaction. Keep in mind that blockchain actions require confirmation.
Acquire LP Tokens: Upon providing liquidity, you'll receive LP tokens that grant you rights to your proportional share in the liquidity pool. It's essential to note that when redeeming these tokens, the amount of assets you get back can vary based on trading activities, pool dynamics, and accrued fees.
Monitor Your Rewards: Each trade that leverages your liquidity also earns you a share of the transaction fee. These rewards are reinvested into the pool. Although the quantity of your LP tokens remains constant, their value in the underlying assets increases as fees accumulate.
Last updated