The evolving digital currency market has brought on board many outfits that provide such services. The new trend is what is called liquidity pools, which are third-party applications.
Uniswap Liquidity Pools
Another angle of this market is those that provide liquidity to the Uniswap exchanges. These exchanges are decentralized, open-source, hosted on the Ethereum Blockchain and 100 per cent on-chain that ensures the swapping of ETH and ERC20 tokens across-board. They operate with Smart Contracts to swap tokens and considerably easy to use. By omitting superfluous patterns of rent-seeking, and 3rd party, it permits speedy and increased efficient exchange.
Pretty in tandem with Blockchain characteristics, it is censorship proof, whiles prioritizing security. Further, Central exchanges are well known for charging hefty fees for onboarding tokens, however, Uniswaps token listings are free of charge.
Low liquidity stifles the advancement of decentralized exchanges, which also discourages Market Makers and professional/active traders form using it. Uniswap, however, solves that problem by pooling together user funds irrespective of the amount to make markets.
How Uniswap Works
It is designed in such a way that anyone can be a liquidity provider on an exchange. The Pools, then share trading fees to whoever contributed liquid based on their portion.
Whenever someone avails liquidity to aid trade, the person becomes an owner of the shares the pool is holding. You can always leave anytime without any restrictions.
The ownership shares are liquid, which mean it can be traded for the underlying digital currency in the pool.
Pools.Fyi In Focus
Pool.fyi is an information portal run by Blockchain Data Analytic outfit, Blocklytics. It is dedicated to informing and updating the Blockchain community about the Uniswap Protocol ecosystem. On the Pools.fyi website, you can find the best liquidity pools out there. It is also your sure bet when it comes to connecting, tracking and managing your pools.
Caleb Sheridan, who is a co-founder at Blocklytics describes it as:
“We’ve been analyzing Uniswap for the better part of a year in our weekly Uniswap Report. Our audience is extremely engaged, so we wanted to build a tool for deeper analysis. Pools.fyi is designed for liquidity providers who support liquidity pools on networks like Uniswap in exchange for some benefit. Distilling information about liquidity pools is difficult even for advanced users, so we’re trying to present this information simply and comprehensively.”
On the site, you can search for any pool and its related data like the available liquidity, volume and Return on Investment (ROI) within a specific period. Data concerning whether the pool is new, stable, incentivized, goods and services are all readily available on Pools.fyi.
More so, it has information about various protocols including Any, Balancer, Curve, Uniswap and Uniswap v2. For the most beneficial knowledge about the space, do not go further than Pools.fyi.
To gain insight into the liquidity pool market, subscribing to the Pools.fyi weekly newsletter is ideal. This periodical brings you the latest trend and development in the sector.
Team Behind Pools.fyi
It has one of the best teams in the Blockchain space behind it. The parent company Blocklytics is in-charge of the industry’s analytics outfits. They render a concise Blockchain data and analysis for marketers, developers and managers to stay ahead of the cloud. Such a company is always at the forefront of the most advanced innovation concerning the Distributed Ledger Technology field.
Some of their notable work is Uniswap Report, Foam Map Leaderboard and ETHdata, which is an open-source Python package for analyzing Smart Contract data. The team is wire into the Blockchain community, which give them immense insight into the scope of things.
Accordingly, whether you are a beginner, or experienced in the space and looking for current updates and bearings, Pool.fyi is highly recommended for you.