Liquidity pools are pools of tokens that are locked in a smart contract. They are used to facilitate trading by providing liquidity and are extensively used by some of the decentralized exchanges a.k.a DEXes.
One of the first projects that introduced liquidity pools was Bancor, but they became widely popularised by Uniswap.
If you’re familiar with any standard crypto exchanges like Coinbase or Binance you may have seen that their trading is based on the order book model. In this order book model buyers and sellers come together and place their orders. Buyers a.k.a. “bidders” try to buy a certain asset for the lowest price possible whereas sellers try to sell the same asset for as high as possible. For trades to happen, both buyers and sellers have to converge on the price. …
RigelSwap is the decentralized exchange (DEX) of Rigel Finance, where users can add liquidity through automated liquidity pools, swap any ERC-20 token for another, and list their tokens.
The liquidity provided to the exchange comes from Liquidity Providers (“LPs”) who stake their tokens in “Pools”, in return they get RLP (RigelSwap Liquidity Provider) tokens, which can also be staked in the “Farm”.
When users make a trade on RigelSwap exchange, they pay:
- 0.3% trade fee;
- 0.25% fee reward for LPs;
- 0.25% of this trade fee goes to the Liquidity Providers, it’s added to the pool balance.
DEXs are similar to their centralized counterparts in some ways but significantly different in others. Let’s first note that there are a few different types of decentralized exchanges available to users. …
Yield farming is a process that allows cryptocurrency holders to lock up their holdings, which in turn provides them with rewards. More specifically, it’s a process that lets you earn either fixed or variable interest by investing crypto in a DeFi market.
Simply put, yield farming involves lending cryptocurrency via the Ethereum network. When loans are made via banks using fiat money, the amount lent out is paid back with interest. …
Staking means locking your crypto assets in a proof-of-stake blockchain for a certain period of time. These locked assets are used to achieve consensus, which is required to secure the network and ensure the validity of every new transaction to be written to the blockchain. Those who stake their coins in a PoS blockchain are usually called “validators.” For locking their assets and providing services to the blockchain, validators are rewarded with new coins from the network.
For a blockchain to perform efficiently, validators are required to provide stable and secure services. Blockchains often enforce this by slashing a validator’s stake for dishonest or malicious behavior. To run a successful validator node, an agent needs to be committed to a selected blockchain and run a secure and continuously available infrastructure. Some blockchains have a significant lockup period (during which validators cannot retrieve their coins) as well as certain minimum thresholds for staking. To avoid dealing with all these requirements, many owners of crypto assets prefer to delegate their coins to a validator running a staking pool. Some blockchains (like Tezos) have a built-in mechanism that allows anyone who does not want to be a validator to delegate their coins to a validator on the network. …
Welcome to one of the most outstanding platforms in the DeFi environment. Users will be capable of performing Farming, Staking, Swap tokens, list tokens in our exchange, all this under the ERC-20 protocol, with a burning system and our special Program “Take me to Rigel”.
Yield Farming is a developing mechanism of earning rewards from cryptocurrency capital investments. Yield farming follows the staking concept where funds are held in a crypto wallet to facilitate the transactions in a blockchain network. The digital funds held in the wallet can earn returns through a process of locking them. Liquidity mining funds are held in liquidity pools by liquidity providers (LP). …