Trade.io | all you need to know about the Liquidity Pool
Trade.io's Liquidity pool is simply defined as a lending facility. In order for participants to acquire access to the Liquidity pool, they are required to use their Trade Token x(TIOx). The LP was finally launched last month, implying that participants can now proceed to loan their TIOx to the Liquidity pool.
Trade.io pays the participants for their TIOx contributed to the pool with a certain amount of interest that is according to what each of them contributed. In case a participant chooses to exit the pool, he or she will receive back his or her original principle.
Trade.io pays the interest to the participants in any form of cryptocurrency that it has in excess that is whether BTC, ETH, TIOx or any other Cryptocurrency.
How the Pool generates Interest
- The process kicks off when the participants contribute their TIOx to the Liquidity pool in order for the company to make markets and provide liquidity through the balance sheet that is associated with the loaned value of the TIOx in the Liquidity Pool.
- 50% of the generated funds from the utilized LP TIOx are distributed to the participants as interest which is in the form of various assets that have been generated from the utilized loaned assets in the LP of the Trade.io Exchange platform. The assets can be BTC, ETH, TIOx or any other altcoins based on the accumulated assets during that day's LP loan utilization.
- A high water mark is established to make sure that all participants are rewarded with interest according to the positive performance of the loaned TIOx.
The Interest Distribution
These are paid regularly whenever the Liquidity pool makes a profit from the utilized loaned TIOx. However on occasions when the LP yields losses there are no distributions made.
Interest distributions are allocated on the following day they are earned. The interest distributions are credited to the LP participants exchange account balance for the respective assets that are earned in that particular distribution. Interest distribution allocations are randomly done throughout the day to make sure that no one asset is exploited on the exchange. A participant can either opt to trade or withdraw the asset at their own discretion that is after his exchange account has been allocated.
How to loan your TIOx to the LP
After accessing the LP in the exchange. Proceed by navigating the "TIOx Lockup widget" At this point, you can enter the TIOx that you wish to lend the LP. You can as well use the available percentage allocation feature that can help you determine how much of your exchange TIOx account balance you desire to utilize in lending to the LP.
All that is required to access the Liquidity Pool.
It is mandatory for every Liquidity pool Participant to have a verified exchange account in order to have access to the LP. In order to verify your exchange account:
simply proceed by logging into your exchange account and click on the profile icon. At this point, you will be prompted to submit in your KYC credentials as required by the AML regulations.After the verification of your account by the Trade.io compliance team, the formerly greyed out Liquidity pool tab in the exchange finally becomes accessible.
You are then required to read and agree upon the terms of service of the LP when accessing the Liquidity Pool for the very first time then proceed by lending your TIOx to the LP after agreeing to the terms of service to the LP.
The Latest update from Trade.io:
Trade.io is launching TIOx markets
Trade.io is growing more stronger as it has just announced about its new strategic move to bolster a regulatory position and presence in Europe. It has entered into an agreement to acquire FCA-regulated primus Capital Markets UK Ltd, which currently holds an IFPRU 125K Matched Principal License.
Primus Capital Markets is to be rebranded as TIOx Markets and turn out to be the very fast company to provide FX trading using Crypto assets as a base currency for deposits and withdrawsls. The clients will be able to make deposits and withdrawals using Bitcoin, Ethereum, Litcoin, and TIOx to acquire access to the FX platform. Substantial commission discounts, tighter spreads, and others will be offered to those utilizing the TIOx.
The Liquidity Pool is growing stronger
As trade.io's services, products, and client base progressively expand. This implies a positive effect on Trade.io's industry that is leading the liquidity pool, making it become a more attractive offer for its clients. There will be an allocation of a portion of revenue from TIO markets to the liquidity pool implying a yet another added source to the facility that lets clients participate in the success of the group.
More details about TIO markets, The FX platform, and its offers will be shared closer to the launch that is expected during Q4, 2018.
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Trade.io Story
50% of the generated funds from the utilized LP TIOx are distributed to the participants as interest which is in the form of various assets that have been generated from the utilized loaned assets in the LP of the Trade.io Exchange platform.
This sounds great @yohan2on