Liquidity Mining Is Changing the Game for Small Investors – Start Your Journey with Delta Exchange Now!

Place/Date: - October 23rd, 2021 at 8:04 am UTC · 5 min read
Contact: Delta Exchange, Source: Delta Exchange

Liquidity Mining Is Changing the Game for Small Investors – Start Your Journey with Delta Exchange Now!
Photo: Coinspeaker

Bitcoin and other cryptocurrencies are on the rise again, drawing quite a bit of attention to themselves. The tremendous rise in the field of decentralised finance is another cause for this (DeFi). Investors can generate cash flow in a variety of ways using cryptocurrencies and fiat currency.

One of these ways, liquidity mining, is rapidly gaining popularity. The introduction of new trading venues is also a significant influence in this context. Until recently, bitcoins were only traded on a centralized exchange (CEX). Smart contracts, on the other hand, can lead to decentralized exchanges (DEX) that operate totally autonomously.

In many ways, digitalization has an impact on the financial sector. New investment solutions that are arranged in a decentralized fashion are appearing. Because such protocols are completely automated, they are often less expensive and more secure than traditional applications.

What Is Liquidity Mining?

When money is deposited in a bank, it’s essentially like lending the bank money. The bank compensates the client by paying interest. Liquidity mining (also known as “yield farming”) is lending cryptocurrency to a cryptocurrency platform that is looking to raise funds. In exchange, the lender is usually paid interest or gets a part of the platform’s transaction fees.

But there’s something else to consider: the lender is usually given units or tokens of the platform’s native cryptocurrency. These tokens are given to lenders who provide liquidity to a new cryptocurrency platform. Some reward tokens give their owners the ability to vote on bitcoin platform protocols like value-capture mechanisms.

The reward tokens, of course, can be traded as well. As a result, many liquidity providers stake their loan on the new platform’s ability to capture cryptocurrency markets, leading the platform’s native cryptocurrency tokens to skyrocket in value and allowing the investor to profit handsomely when selling the reward tokens.

How Does Liquidity Mining Work?

Users can put their own money on a site in exchange for a percentage of the fees. Only trade pairs are allowed to be deposited here, which implies that the pool is always filled with two distinct cryptocurrencies. As a result, each trading pair has its own smart contract or pool. Users can send their token A to the trading address and receive their chosen token B at the given exchange rate in return.

This process comes at the cost of a small fee. This fee also serves as a financial incentive for capital deposits. For each trade, liquidity providers are paid a percentage of the trading fees, thus earning them a passive income.

Liquidity Mining with Delta Exchange

Delta Exchange, with its DETO token, is committed to serving clients to the best of abilities, and to put that in motion, they’ve rolled out several features to ensure that the users can get the most out of cryptocurrencies on a single platform. One of such features is our liquidity mining program with Robo trading Strategies.

Robo Trading allows you to generate money with cryptocurrencies using the approach you believe is the most effective without breaking a sweat. Robo trading, as the name implies, is an algorithmic trading idea that allows you to choose the optimal approach based on the risk you’re prepared to take.

You can deposit funds into one of the strategies and mine DETO (Delta Exchange Token) while also receiving potential yield from the strategy using Delta’s liquidity mining program.

To sign up for Robo trading, go to the robo trading dashboard, learn about all of the trading strategies, choose the best one for you, and transfer your funds to the strategy.

Strategies on Delta

At Delta Exchange, you can find a variety of strategies to help you get the best possible returns and maximize your profits. These include:

  1. Top 20 Momentum
  2. Top 2 Momentum
  3. DeFi Momentum
  4. Cash Future Arbitrage
  5. Large cap AMM
  7. BTC Momentum
  8. ALT BTC Momentum
  9. DETO Staking Pool

Conclusion: Liquidity Mining May Unlock a World of Possibilities

Automated Market Maker (AMM) trading on decentralized exchanges is on the rise, allowing investors to earn passive revenue. However, a fundamental understanding of the application’s functions and how to utilize them properly is often required. Even if many platforms are already regarded as secure and have been thoroughly vetted, user errors might result in losses.

Even the programmes themselves cannot ensure total security. Most projects, for example, are in beta versions, and their use is solely at the user’s risk.

As a result, a substantial personal study should be conducted before selecting a DEX, and the function should be evaluated using tiny test transactions. Even if the user’s wallet access data is lost, the user is completely responsible and has no recourse against the exchange. In exchange, a higher yield is coupled with a partly increased risk in liquidity mining. Solid profits can often be achieved by combining multiple pools, and profits can be immediately reinvested through yield farming.