Tuesday, December 6

Waves, the easiest (and most profitable) way to invest in decentralized finance (DeFi)

The decentralized exchange of Waves launched a new token on November 4, which it called WX, through an Initial Decentralized Exchange Offering (IDO). It was a complete success. In just 29 hours, $ 50 million was raised.

An IDO is a project through which a cryptocurrency or token seeks to raise funds. In the case of WX, this new token is based on the experience of more than five years of the Waves team in this sector.

In fact, other projects of this type by the company have been successful, such as the Initial Coin Offering that it carried out in 2016 with a starting price of 0.188 dollars and that has reached 43 dollars, offering a revaluation of 15,857.45 percent for investors who bet on it.

But entering an IDO is not the only option that the Waves ecosystem offers the investor to enter this universe. Among the different possibilities present in the platform, there is one called ‘liquidity pools’, a new investment product that allows users to receive income by providing liquidity to the system.

Invest in liquidity pools

Basically, a pool is a wallet where users deposit funds that are used to create a market in decentralized ‘exchanges’.

In reality, in all markets of any type of asset (cryptocurrencies, stock market, gold, currencies, etc.) there are always market makers, who place orders so that there is price movement and people can operate.

On the one hand, centralized ‘exchanges’, market makers are large investors, mutual funds or the platforms themselves that, due to their large size, have control of the price to some extent.

On the other hand, in decentralized ‘exchanges’, instead, what is sought is that it cannot be controlled by any person, organization or company, so these liquidity’ pools’ are made, in which a ‘ smart contract ‘determines how to create market.

By doing this, a series of benefits are generated that are distributed among all the investors who are providing liquidity to the system.

Juicy returns

And, currently, these ‘pools’ are offering very juicy returns. The ‘pool’ formed by the cryptocurrencies WX and USDN, for example, is giving a high annual return, especially if you decide to boost them with the blocking of WX.

The boost is used to maximize returns and has to do with the period in which the funds are locked. The maximum is four years.

Beyond that, the profitability is obtained from two sides: On the one hand, because the blocked tokens (invested in the ‘pool’) rise in price and, also, because of the token exchange commissions, which are distributed among the investors who are participating in the ‘pool’.

To invest in these liquidity pools, it is not necessary to go through any suitability or suitability test. It is enough to enter the platform, log in and buy the currencies by card or by sending the currencies from any other ‘exchange’ where the user has deposited cryptocurrencies.