Rhonin | Flipside Analyst

    Rhonin

    Joined Oct 16, 2021
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    12Upvotes
    fastest growing pool on sushiswap

    fastest growing pool on sushiswap

    Dec 11, 2021 - What is a liquidity pool? A liquidity pool can be thought of as a pot of cryptocurrency assets locked in smart contracts. The funds can then be used for exchanges, loans and other applications. What if buyers and sellers have not reached an agreement on the price? Or, what if there is not enough liquidity for an order to get executed? That is where the concept of market makers comes into play. Market makers facilitate trading by willing to buy or sell a particular asset, thereby providing liquidity and enabling traders to trade without waiting for another buyer or seller to appear. The daily volume of the pool is an important factor because liquidity providers make money only when there are swaps happening! So, higher volumes will bring more profits. In this article, we will examine the volume of swaps in Sushi Swap liquidity pools. Note that the larger the volume of swaps, the more profit that pool has for liquidity providers. example : If a user deposited $SUSHI and $ETH into a pool, they would receive SUSHI-ETH SLP tokens. These tokens represent a proportional share of the pooled assets, allowing a user to reclaim their funds at any point. Every time another user uses the pool to trade between $SUSHI and $ETH, a 0.3% fee is taken on the trade. 0.25% of that trade goes back to the LP pool. So my basis for calculating the growth of liquidity pools is the volume of swaps. In these calculations, the polygon network is also considered.

    Rhonin