Hello everyone. Cent's seventh liquidity pool has become active. Today we created the Cent/Trade liquidity pool. After the pool was created, I added some liquidity. When I checked while creating this content; $5.8 worth of trading volume had already occurred in the liquidity pool. With this pool, the depth in the markets of Cent and Trade tokens and in the liquidity pool will increase even more. Therefore, the volatility in both tokens will decrease. And price movements will become more consistent.
We created the Trade token in September. The purpose of creating the token was to manage the Hive-Engine Investments Study more actively and to effectively distribute some of the income from the study. When creating the token's introductory text, it was mentioned that a liquidity pool would not be created with Cent. However, we had a few problems in this regard. I will talk about one of these problems here;
=> The liquidity amount in the Hive/Trade pool has reached $2800 (approximately 10,000 Hive). Reaching such a liquidity amount in a short time is certainly successful. However, we could not reach the expected liquidity and trading volume in the Hive/Trade market. Some days, there are no transactions in the market. The first reason for this may be that the token reflects the investment token style. The low trading volume will not be a problem for the liquidity pool. However, if any user enters a large amount of buy/sell orders, there will be extreme volatility in the price. The vast majority of Hive-Engine users prefer to enter market orders instead of entering limit orders. Therefore, we needed to increase the depth in the market. We can easily provide this with a third token. The presence of a liquidity pool with HBD, BTC and Bee made Cent a good option.
The presence of a liquidity pool with a third token will increase the trading volume of the Trade token. Any price change in Hive, BTC, HBD, Bee, Cent, Leo, Pob and Trade tokens will trigger arbitrage users and arbitrage bots. The number of user or bot orders and order sizes in the Hive/Trade market will increase. This will result in increased depth and liquidity.
LP rewards have not been activated in the Cent/Trade liquidity pool. And reward distribution will not be activated. Users who provide liquidity to the pool can earn from transaction fees of 0.25%. As it is known, the real return from the Trade token can be obtained by providing liquidity to the Hive/Trade liquidity pool. Or you can follow the price movements of the token and chase buying/selling opportunities. I added some of my Trade tokens to the liquidity pool. I also enter market maker orders in the Hive/Trade market with some of them.
We will start an unstake transaction for approximately 750,000 Cent staked in the @centtoken account. Half of the obtained tokens will be added to the Cent/Trade liquidity pool as liquidity. We will add the remaining tokens to the Hive/Trade liquidity pool as LP rewards. The account received approximately 1,500,000 Cent delegations within the scope of the Cent Delegations Study. And it has reached a large voting power compared to other Cent curators. Considering both the balancing of the voting power of curators and the reduction of token inflation, we made the decision I mentioned above. You can find more data in the monthly and weekly published reports. Therefore, it would be useful to follow the @centtoken account. See you. Stay tuned.
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