[ad_1]
Press release
Press release. According to Hoo users who participated in the AMM (Automated Market Maker) test, each liquidity pool of Hoo lists quantitative data such as total liquidity, 24H transaction fees, 1-day and 7-day annualized returns for users refer to. Compared with on-chain DEXs that provide liquidity such as Uniswap, users can operate on the Hoo website without consuming gas fees. The operation speed is faster, and there is no need to worry about security issues such as smart contract loopholes and hacker attacks.
Currently, Hoo has opened bitcoin/USDT, Ethereum/USDT, Sol/USDT, dog/USDT, call /USDT and other trading pairs. And the exchange will add more trading pairs according to market demand, and add additional currency rewards, Hoo VIP rights and so on.
Hoo AMM mining pool provides users with commissions
Recently, Hoo Exchange has been updated to add the AMM pool feature. It is understood that the AMM mining pool is currently in the gray testing stage, and some ordinary users can experience and benefit from this scenario first.
For DeFi players, AMM (Automated Market Maker Mechanism) is no longer an unpopular concept, and this mechanism is more often used by DEXs such as Uniswap and SushiSwap. Its characteristic is to support all market users to provide liquidity for asset trading pairs, and finally form a liquidity pool with rich liquidity. The asset price changes according to the ratio of the two assets in the liquidity pool. Correspondingly, liquidity providers can split Transaction fees incurred by sub-trading pairs.
The AMM mining pool launched by Hoo is equivalent to the CEX evolution version of the Uniswap AMM mechanism. As early as 2020, Hoo explored CeFi when DeFi was popular, and launched exchanges and mining boards such as HooSwap and HooPool. According to reports, the Hoo AMM mining pool is considered to be an iteration on top of HooSwap, but the liquidity in the pool will be provided to multiple mainstream trading pairs in the Hoo coin trading area.
Some users who participated in the gray test said that the Hoo APP can find the entrance of liquidity. There is a “Liquidity Pool” button in the upper right corner of the Hoo Cryptocurrency trading page. After clicking, you can inject the corresponding two assets bitcoin/USDT and other trading pairs, then the mining pool will automatically make the market and issue daily rewards according to the proportion of the liquidity provided by the user to the total mining pool.
Hoo Liquidity Pool Page
take bitcoin/USDT Taking trading pairs as an example, users can deposit funds at the same time bitcoin and USDT Assets are proportional to the current market price bitcoin, at which point the liquidity will be automatically added by the system to bitcoin/USDT Trading pairs in the Hoo spot trading area, whenever investors buy or sell in the pair, users who participate in providing liquidity can distribute the fee proportionally.
According to the rules, users can obtain liquidity rewards issued daily. Since the rapid inflow and outflow of liquidity may cause the currency price to deviate from the market price in a short period of time, in order to avoid the risk of price fluctuations and better manage the calculation and distribution of rewards, Hoo has set some conditions in the redemption process of the AMM liquidity pool. At present, users need to provide liquidity and can redeem funds after one hour, and only supports full redemption, and a single pool can only perform one redemption operation within 24 hours.
According to the test participants, on the liquidity mining pool page, each mining pool provides some visual quantitative data for users’ reference. This includes total liquidity, 24H transaction fees, intraday annualized yield, 7-day annualized yield, etc. On this page, users can check the liquidity and percentage status of their quotes at any time. The redemption operation is also easier. Just click the Redeem button to withdraw liquidity and dividend rewards, and the assets will be automatically transferred to the wallet account in about 3 minutes.
How to reduce AMM costs while ensuring safety?
Some participants said that more guaranteed security is of great significance to the Hoo liquidity pool.
In the past few years, although the ecosystem on the chain has flourished, the security issues on the chain have never stopped. If users are not careful, they are likely to face great losses, such as technical loopholes in smart contracts, backdoors left by project parties, and hacker attacks and theft of coins. But now the positive comments from users are that all the operations of users are within the Hoo site, which is a centralized trading exchange, which is equivalent to a controlled space. Users can enjoy high security.
A person in charge of Hoo said that the probability of security incidents in the Hoo liquidity pool is almost 0. This is because the Hoo AMM liquidity pool has added a spot module. In theory, as long as it is safer than the DEX on the chain, the spot transaction order book will be smooth.
Users need to be aware that whether they are providing liquidity in DEXs such as Uniswap or making markets for trading pairs in Hoo, they will face the common problem of the AMM mechanism, which is causing impermanent losses.if bitcoin/USDT Yes, for example, when the price bitcoin decline, there will be a corresponding increase in liquidity providers bitcoin and reduce accordingly USDT, leading to financial wear and tear. However, it is more convenient and instant to operate on a centralized exchange, so users can withdraw assets in time at the beginning of severe market fluctuations to avoid large unstable losses.
Some people in the circle believe that the launch of the AMM mining pool is a further exploration of CeFi, which is good for users and is also closely related to the spiritual core of Web3. Under this function, users’ idle assets can be put into the pool to earn income, and the exchange can obtain more abundant liquidity, forming a win-win situation. “
The Hoo AMM mining pool is expected to be fully open. More users can experience the role of “Hoo shareholders”. Insiders expect that this model of opening the exchange building portal for users and rewarding them may become a fashion with the development of Web3, and more and more appear in centralized exchanges.
keep in touch: telegraph | Twitter | website | Moderate
Here is the press release. Readers should do their own due diligence before taking any action related to the promoted company or any of its affiliates or services. Bitcoin.com is not directly or indirectly responsible for any damage or loss caused or alleged to be caused or related to the use of or reliance on any content, goods or services mentioned in the press release.
Image Source: Shutterstock, Pixabay, Wiki Commons
[ad_2]
Source link
