Liquidity pools are defined as the pools of tokens bonded in a smart contract and use simple calculations to evaluate pool prices. These pools are being used in the cryptocurrency market and are gaining fame because they deliver liquidity to the projects and the investors; When tokens are inserted into one side, the worth of the token decreases; when these tokens are withdrawn, their price increases giving whales tremendous power.
Liquidity pools have several benefits that make them famous; these benefits supersede person-to-person and conservative order book exchanges. One of these trading tokens’ benefits is that they accommodate investors to earn a profit on their digital assets. However, certain risks involved in these liquidity pools, and investors should educate themselves about these risks before making any investment.
The Volatility of the Liquidity Pools
The recent developments are worth mentioning to know the pools’ volatility when SushiSwap used “vampire attack” on UniSwap. As a result, of the attack, UniSwap lost $1 billion of liquidity pool reserves. But the creator of SushiSwap, Chef Nomi, liquidated 10% of the developer fund, which resulted in him accumulating $ETH 38,000, which is nearly equal to $12.5 million.
As a result, Sushi lost 70% of its worth, and it created public perception about Chef Nomi’s SushiSwap being an exit scam. However, Chef Nomi returned 38,000 ETH in a couple of days, but he lost the investors’ confidence and trust and managed to recover Sushi’s value only by 20%.
There is only a single DeFi project, namely jointer, that addresses the issue directly, and the market is taking notice; since its launch on September 29, it is enhancing the gain 30-times.
Enter Jointer.io’s DeFi Solution to the Rescue for Protecting the Investors
The jointer is offering a decentralized finance to protect the investors; it locks the 50% of all pre-minted tokens for 10-years. Moreover, all pre-minted JNTR are limited to engage directly with the secondary markets. It means the long-term success on behalf of the early investors and teams won’t be able to dump the tokens like Sushi.
When the holders or pre-minted JNTR want to sell their JNTR, they have to use a smart contract gateway to limit their ability to access any liquidity pool or set the price for the pool. The limitation will allow new investors to take most of the benefits.
Decentralized DAO Voting & Ongoing Mint
Jointer’s smart contracts are fully decentralized and controlled via DAO, and the current minting project is based on the market demand. The fundraising amount from the previous day and the value of JNTR at the end of the day determines the starting mint of the coming day. In order to make it simpler to understand, it takes the total from the previous day and divides it to the JNTR face value at the end of the day.
Individual and group discounts are also provided to encourage investors to invest more than the daily auction threshold. Investors are rewarded with discounts of up to 50% to reach the daily auction threshold.
Risk Removal of UniSwap & SushiSwap by Jointer’s Reserves
Jointer goes beyond the simple slippage calculation used by UniSwap and SushiSwap, and it delivers the best price slippage recovery for the investors. The jointer model uses side reserves for continuous retrieval of the primary reserve. JNTR offers the price slippage recovery after the reclamation for the investor looking to redeem JNTR.
If you want to learn more about jointer, you can visit jointer.io