The Leo Chronicles: the wrapped LEO Project
I think it's important to understand a few ideas about it, in brief.
Leo is a second layer token on the Hive blockchain.
We want to create a trading pair on the ethereum blockchain.
Because Leo is not an Ethereum token, we must swap it for a ethereum token made specifically to represent a non-ethereum token, so that non-ethereum token can be traded on the ethereum blockchain.
So we create a ERC token; WLEO2 to represent your LEO token and do a swap, we given you one WLEO for each LEO you wish to swap. Now you have an ethereum token to trade on ethereum blockchain.
You earn money on Uniswap, a decentralized exchange on the ethereum blockchain, by depositing a dollar equivalent amount of each coin that makes up a trading pair, into the pool of tokens available to trade. A dollar equivalent pair means a dollars worth of each toekn. For example you would deposit ten of a token valued at one dollar and two of a token valued at five dollars. This pool is called a Liquidity Pool, and if you provide those tokens you are a Liquidity Provider. By doing this you earn a portion of the transaction fees from people who trade WLEO for ETH and ETH for WLEO.
These earnings are paid in ETH or LEO.
Leofinance is providing additional financial incentives to WLEO-ETH Liquidity Providers, they get both a portion of the transaction fees as rewards and 15% of the annual inflation of 2,000,000 Leo distributed via snapshots over time, so that the earlier and longer you provide Liquidity, the greater your APR or rewards are...
This is great news for experienced Liquidity Providers and Yield Farmers, because instead of moving your investment capitol constantly in search of the best yield, you can increase your yield by not moving it.
Hmmm less work, more money
But seriously it’s true! Do the math!
Understand that DeFi is all about earnings, which is called the Liquidity Pool APR. Investors involved in earning money through providing Liquidity to Liquidity Pool trading pairs, basically hunt for the best APR, and then buy both coins, and deposit dollar equivalent amounts of each. This search for the highest APR and movement of investment capitol from Liquidity pair to another liquidity pair in search of the highest yield is called Yield Farming. But a UNIQUE characteristic of this pool is the 15% of annual inflation means you increase your yield by not moving your capitol!
this WLEo-ETH trading pair investment opportunity is exiting because of the high APR it will provide, and because the large amount of money which will potentially be invested from outside our ecosystem will drive up or increase the price of both WLEo and LEO, since people need to wrap LEO and deposit it in the Liquidity Pool to provide this investment opportunity. So both the Liquidity Pool investors and the content creators/curators on the LEo interface benefit, due to the mutually beneficial outcome of increased price for LEO.
Do your own research into Liquidity Pools, and providing Liquidity. Invest what you can afford to lose, spread the word about wrapped LEo by retweeting this post. Thank you!
Posted Using LeoFinance Beta