Each Hive Outpost and Community should have a Liquidity Pool on TribalDex
Hive Communities and Outposts are booming on Hive blockchain and with that, the need for advantageous token exchanges comes as a prerequisite of success. Simply having an exchange market for a community token where the BUY and SELL positions are not separated by a big gap, offers the ability to the users and investors to trade without leaving a big chunk on the table. Trading nowadays tokens just on Hive-Engine with a 5% to 10% price gap, simply doesn't make sense in this DeFi era and discourages people to take action.
The Liquidity Pools on Hive blockchain are powered by Hive-Engine solution through TribalDex and are known as Diesel Pools. With this you can ensure your community enjoys high liquidity, thus low slippage between BUY and SELL orders. Hive being feeless, so are the exchange transactions and this makes the best DeFi solution within the entire blockchain space in my opinion.
Not only that you create a market with high liquidity which encourages users to trade at any point, but you can attract by having the basic tools other users or investors through ease of use. And if you add rewards to the Liquidity Pools, that will provide more incentives for anyone to get a taste of it. I am using quite often both TribalDex and BeeSwap which are two great interfaces for viewing and operating Liquidity Pools. Each has different features which might come in handy depending on your habit or choice - for example, I like the Rewards filtering on BeeSwap where I can see what pools have a rewards program, besides offering liquidity.
We are in a financial era of speed where DeFi provides more freedom to end-users than ever and if we want to keep up the pace with what's happening in the world, Liquidity Pools are a must, they are the new normal. Why should anyone want to lose 5% or more on a market where liquidity might be missing? No way, Jose! If you care about your community members, make sure they have the right tools to use their tokens easily and advantageous.
Posted Using LeoFinance Beta
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Yeah. I agree wholegeartedly. The money all the users save in having good liquidity is significant over time, especially if they do a lot of trading.
I had thought about starting a pool for a fledgling community but it costs a bit to start. Also the best way to get your pool large enough to make a difference is to offer rewards. I couldn't figure out how to really do that without costing me as the pool owner a lot of "money". Maybe I am just too thick to get it.
Does a pool operator lose money if he doesn't get the rewards right? I worry they do.
I guess you could just start the pool with no rewards and figure it out as you go along.
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Make fees for creating pools cheaper let the ai have fun
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