VERASWAP LAUNCH LIQUIDITY MINING POOLS
Liquidity pools are a collection of funds in the form of tokens locked in a smart contract.
A smart contract on the other hand can be seen as a self-executing contract with the terms of the agreement between buyer and seller that is being directly written into lines of codes or a transactional protocol. Smart contracts render transactions traceable, transparent, and irreversible.
Liquidity pools are used to facilitate decentralized trading by providing liquidity. Users who provide tokens to the smart contract are called liquidity providers and they hold native tokens of the liquidity pool of which they had provided liquidity. This native token is mostly referred to as liquidity providers (LP) token.
Liquidity pools are one of the fundamental aspects of decentralized finance (DeFi) ecosystems today. It is the backbone of many Decentralized Exchanges (DEX) especially DEX which work with the use of automated market makers (AMM) features.
Liquidity pools can primarily serve a purpose for decentralized exchanges and DeFi yield farming. Both approaches are extremely valid and useful, but there are other options liquidity pools are applicable as well. Issuing new tokens to a large community, for example, can be achieved in different ways. Instead of taking a blockchain snapshot of wallet balances for an airdrop, one can use liquidity mining for this purpose. Users will create a liquidity pool, and tokens are distributed algorithmically based on their pool share.
Another use case that is gaining traction as to the application of liquidity pools is in the area governance participation. Some DeFi projects require a very high token voting threshold to create and pass governance proposals. By pooling funds into a liquidity pool, it becomes easier for token holders to meet the required thresholds.
Liquidity Pools and Application to Decentralize Exchanges
Many Centralized exchanges that exist in the cryptocurrency ecosystem use the concept of the order book system in a bid to match buy and sell orders for cryptocurrency assets. This means that for a certain quantity of a particular asset to be traded, say a sell order, there has to be someone at the other end willing to buy that same quantity at the same price, this will be the buy order for that quantity of that particular asset. These asset trades are held by the exchanges and the matching mechanism is executed by these centralized.
The earliest decentralized exchanges created a means by which cryptocurrency assets can be traded without the exchanges holding the assets of users who trade on these exchanges but the order book system still existed. The rise of AMMs which used liquidity pools as a means of facilitating trades on these DEX is quickly seeing the elimination of the order book system.
A basic Liquidity Pool creates a market for a particular pair of assets on a decentralized exchange (e.g: VRAP/BUSD). When the Liquidity Pool is created, a liquidity provider sets the initial price and equal supply of both assets. This concept of an equal supply of both assets remains the same for all the other liquidity providers willing to supply liquidity to the pool.
The advantage of liquidity pools for decentralized exchanges is that it does not require a buyer and a seller to decide to exchange two assets or tokens for a given price and instead leverages a pre-funded liquidity pool and a mathematical algorithm that determines price of the asset at any given time.
The funds held in the liquidity pools are provided by other users who also earn passive income in form of trading fees on their deposits based on the percentage of the liquidity pool that they provide. Liquidity pools ensure a continuous supply of liquidity for traders wanting to use decentralized exchanges.
VeraSwap Liquidity Pools
VeraSwap will be launching several liquidity mining pools in the coming days. This is part of our long-term focus on consistent developments that ensure seamless user experience as well as the first fully decentralized exchange and on-chain staking protocol that allows users to earn rewards from other liquidity pools.
This liquidity mining feature on the Veraswap protocol offers participants various mouth-watering Annual Percentage Yields (APY) across different pools. Participating in any of the liquidity mining pools offers participants the opportunity to earn more $Vrap tokens as rewards. The APY offering on the Veraswap liquidity mining ecosystem ranges between 360.00% to 50000%.
Current Available Veraswap Liquidity Mining Pools, APY Offering and Daily Rewards
VRAP-BNB Liquidity Mining Pool
Participants of this pool can deposit their liquidity providers token on the Julswap DEX and earn more $Vrap as reward at an APY offering of 36,000%. Therefore liquidity providers staking their VRAP-BNB LP tokens on this pool stand a chance of earning 98% on their stakings daily.
VRAP-BNB Liquidity Mining Pool
If you provide liquidity on the Veraswap DEX and hold the VRAP-BNB liquidity provider token, you can deposit it within this pool and earn $Vrap as rewards for staking at an APY offering of 50,000%. Staking your LP tokens from the Veraswap DEX on this pool will earn you an ROI of 137% daily.
This pool offers the highest APY among the four liquidity mining pools that have been launched.
It must be noted that LP tokens staked within this pool are only to be gotten from Veraswap.app
VRAP-BUSD Liquidity Mining Pool
This pool is for participants who provide liquidity on the Veraswap DEX and hold the VRAP-BUSD LP tokens. By staking your VRAP-BUSD LP token within this pool you can earn more $Vrap token as reward for staking at an APY offering of 360%.
Participants within this pool will earn 0.98% daily and as the previous explained pool, LP tokens staked must be from Veraswap DEX
VRAP-CAKE Liquidity Mining Pool
For the VRAP-CAKE liquidity pool, participants who hold this LP token from the Veraswap DEX can stake them here and be rewarded in $Vrap token at an APY offering of 500%. The daily ROI for participating in this pool is at 1.4%.
These are just a few of the pools we have been able to work on their development, in the future we hope to bring more pools that span across different liquidity pools as well as other protocols.
How to Participate in the Veraswap Liquidity Mining Pools
Step 1: Get your liquidity provider tokens for any of the pools you intend to participate within your BSC wallet. Your LP tokens are given to you when you provide liquidity at the appropriate DEX or Defi protocol.
Step 2: Visit the Veraswap Liquidity Mining URL: https://veraswap.org/liquidity-mining
Step 3: Select any of the pools you wish to participate in and click on the “Deposit” button.
Step 4: Input the amount of LP tokens you wish to stake and click on the “Stake” button.
It must be stated that you will be required to pay a little fee in the form of BNB to execute these transactions. Also your rewards are calculated every second and therefore you can claim them at any time by clicking on the “claim” button.
ABOUT VERASWAP PROTOCOL
Veraswap is a fully decentralized AMM with staking and other market driving features. Veraswap brings a mix of several Decentralized Finance protocols under one platform with an easy to use (user friendly) interface.
Tokenomics
Total Supply: 100M
Circulating Supply: About 12M
Contract address: 0x271c418b045d05a1d52c6bf849d47b5b5b4d769e
🔸Official website: https://www.veraswap.org
🔸Telegram: https://t.me/veraswap
🔸Announcement channel: https://t.me/Veraswapannouncement
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🔸Medium: https://veraswap.medium.com
