Why You Should Put Your Money In A Liquidity Pool: The Perks Of Defi

Yep more defi posts. Sorry if anyone is getting tired of the defi crazy but it really is a big deal right now that can't be ignored. Well it can be ignored but you might miss out on something big. There are lots of scams and products that are not doing much but there are also great tools here that are probably going to stay long term. One of those tools is the liquidity pool which I think, like dexes, has a chance to be a part of crypto for the future. As long as new projects pop up and people need to swap coins this has a place in crypto.

I have talked before how it can help new projects get both liquidity and attention for their product:

For this post I want to talk about why you, a token holder, would want to put your coins in one of these pools.

It Makes All Coins APR Coins

This is the biggest perk a liquidity pool, in theory, can turn any coin into a coin with a yearly return. Literally any coin. Does that sound crazy? Yes. But it is true. If you take coin A and you pair it with coin B you can make a pool. Then whenever someone trades coin A for B (or B for A) you get a piece of the fees. This means that you will now get more coins for your coins. It does not matter what the coin is as long as people are swapping you are getting an increase of your coins from the fees. So instead of you just sitting on your coins you can leave them in a pool and get a return for them. If these are two coins you are comfortable with long term (especially stable coins like tether) it only makes sense to leave them in a pool so you can put them to work.

Since Leo is coming to uniswap we can use that as an example. If you keep Leo staked you need to vote everyday to get your return. Voting isn't hard so I would still call it passive-ish income but lets say you want to be completely lazy and just get a return for doing nothing (or you want to go on vacation for a month and not look at a computer). You can add your leo pair to the pool and get a return as people swap leo for eth. Then when you get back you can take your coins out (there is no unlock timeframe) and stake them again.

The Leo Perks

Not only will I get more Leo for putting my Leo is a pool, but the people who run Leo are giving bonus Leo for those who put Leo in the pool. I wanted to see how many times I could use Leo in a sentence. Team Leo is dropping 300,000 Leo to those who put their Leo in a pool and the $10,000 of Leo that they are putting in the pool is excluded from those rewards. This means more Leo for letting it sit there. That is some pretty hard working passive income. You can then take that Leo and increase your share in the pool but compounding it or sell it and buy yourself something nice. The freedom is yours and you can easily trade it for easy to cash out coins like Ethereum because of the swap pair that exists.

Leo is really taking passive income and super-charging it to add a lot of utility to Leo. Keep an eye on it and even if you are not interested you can still stake your Leo on here and make more income with your votes and curating. It is a win win.

Posted Using LeoFinance