Liquidity Provision

Liquidity Provision
Users will be able to create any PSP22/PSP22 or PSP22/AZERO liquidity pools which will create pairs that can be traded in "trade" section.
Liquidity pool creators can choose and set the liquidity providers fee from 0.3% - 3% (liquidity pool creators dont have any advantages or benefits over regular liquidity provider)
Liquidity providers are also known as "market makers" and they helping by providing their crypto assets to help with platform decentralization of trading and in return, liquidity provider rewarded by liquidity providers fee over time.
  • IMPAIRMENT LOSS - When you deposit tokens into a liquidity pool and its price changes a few days later, the amount of money lost due to that change is your impermanent loss
When you make a swap in a Panorama swap, the transaction is also charged a LP fee on top of the AZERO you need in order to interact with smart contracts.
0.3% - 3% is distributed to liquidity providers. (we delegate % amount of tokens to the liquidity providers as a incentive)
A nominal amount of AZERO is also required to process Aleph Zero network fees on each trade. Most transaction costs will be very low as well.
The currently proposed fee structure is subject to change.