At Roseon, we have always strived to be the people’s platform. Our customer-centric services, combined with an aim to eliminate barriers to crypto adoption are our secret to success. Recently, we realized that although we do provide liquidity provider (LP) services through staking pools, people were still facing difficulties due to several reasons.
These included the limited number of LP pairs, pool sizes, and even the process of becoming a liquidity provider seemed to be a bit of complexity. To help you, our users, we have come up with a highly effective solution: Our partnership with Beefy.Finance.
But What Are LPs?
In the age of DeFi, liquidity pools have come to play an important role, especially in the case of non-custodial DEXs (Decentralized Exchanges).
Unlike centralized or traditional exchanges, DEXs don’t carry an order book, where trades are conducted when sell and buy orders are matched. Since traders don’t deposit their assets within a DEX, the concept of an order book simply breaks down. The only way for a DEX to swap assets was to have both parties online and their wallets connected to the trading smart contract.
The industry came up with a solution, called Automatic Market Maker (AMM) which allowed people to deposit their assets in paired pools (e.g. ETH/USDT). A trader, for example, looking to buy ETH with USDT can simply connect his wallet to the pool smart contract and swap assets at the established pool rate without the need to wait for an incoming match. This means there is no wait time and the trading can be done without the need of a middle man. The pools provide liquidity to the DEXs, hence the LP moniker.
But what about the liquidity providers, you may ask. What do they get out of this all? Liquidity providers are incentivized to deposit their tokens in the pools by giving them a share of the profits made through the swap fee. While the fee may differ from pool to pool and protocol to protocol, the amount of incentive is usually equal to the percentage of liquidity ownership within the complete pool. Having a 5% share in the pool means a 5% of incentive distribution, for example.
As proof of their commitment (and making it easier to keep track of deposits and profit distribution, every provider is awarded a dedicated LP token for that pool. Providers can redeem their deposits by returning the LP tokens.
How Roseon Makes it Easy
In a traditional DEX or LP market, each pool will come with its own LP tokens and require users to deposit both assets of the pair. This means that the more diversified your liquidity pool investments are, the more different kinds of LP tokens you will hold. Over time, this can become pretty complex to handle and maintain, making it difficult for most people.
Keeping track of the right smart contracts also compounds the issue. Sending deposits or returning LP tokens to the wrong address means the assets are lost (and thus, your investment and money).
Roseon App has always created an atmosphere of easy crypto investments and now, with its Beefy.Finance integration within its mobile app, it offers the easiest way for anyone to become a liquidity provider. All you have to do is to log in to your Roseon App mobile app and navigate to Farms. There you will see the Beefy option on the top right of the screen.
Selecting it will provide you access to Beefy.Finance pools. The multi-chain liquidity pool aggregator provides different pools to take part in. You can simply select the pool you prefer and deposit just one asset of the pair. Roseon will take care of the rest. You can sit back and relax as your deposited assets start earning you passive income through swap fees.
Advantages of Roseon/Beefy LP Service
- Zero Complexity: Simply Log in to our app and deposit assets in any available Beefy pool.
- Chain Agnostic: The pools can be on any blockchain, regardless of your assets.
- Single Asset Deposit: No need to deposit both tokens of the pool. You have the option to deposit any of the two.
- Transparency: All data pertinent to each pool is available in an easy to understand manner. Make a sound decision every time.
- Withdraw Anytime: Keep your LP tokens to earn a swap fee or return them to get your principal amount plus profits accrued.
- High Returns: Stake your stablecoins like BUSD and USDT or major cryptos like BNB and ADA for a massive 29% return, a perfect solution for the current bearish market!
Roseon App is the ultimate CeDeFi app that caters to all of your crypto investment and earning needs. Our innovative centralized approach toward a decentralized economy means that the complexity of using cryptos, DeFi, DEXs, etc. is a thing of the past. Simply register on our app and follow the intuitive user interface to start your crypto journey today!
Download Roseon Mobile App
Web app: https://app.roseon.finance/
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