Often when investing in liquidity pools investors have to do swaps or provide deposits of assets in order to participate. Within many of these pools there are fees. The fees are apart of what the pools earn through investors who invest in them. There are a few drawbacks with these fees. For one the initial cost of entry to invest in pools will be high assuming there are fees as investors need to pay up before earning. Another is the limited opportunities to be flexible in the investment. Investors would want to invest in pools for longer duration to limit fees on withdraws and swaps.
For those who use Hive there are opportunities to invest in pools without incurring fees. In fact users can earn daily rewards for participating and withdraw without fees at all. This post we will dive into what this hidden gem is.
Defi Boom - Tribaldex
The great Hive oracle @aggroed introduced Tribaldex when it comes to investing in pools. In early 2021 the Tribaldex.com came online. It is basically an exchange of pools between pair assets related to Hive Blockchain. Whether it will be native token Hive or other Hive second layer tokens.
With the integration of Hive-engine users can provide swap.hive and other tokens to form a liquidity pool. For those who are not aware Hive-engine is a wallet that stores Hive tokens. This includes, Hive, the native token of Hive blockchain. In addition with the Hive-Engine protocol users have a single place to see their second layer tokens on the blockchain.
Users are able to provide unused tokens onto the Tribledex platform via pairs to add liquidity to pools. The fills up the chests of swap and allow the platform to assist users who wish to trade between two different tokens.
By using swap users can change between Hive tokens easily and it will have less slippages if there pools have more participants.
In addition to ease of movement of Hive tokens through swaps users can earn rewards for participating in liquidity pools. This is the same farming rewards in liquidity pools from all the major DEX exchanges. Yet on Tribeldex the fees are essentially zero!
BeeSwap
Although rewards are listed on Tribaldex for participating in pools there is an easier interface detailing the daily rewards offered per a pool. This interface can be found on https://beeswap.dcity.io/swap?pools
For example I play dCity and have additional SIM not used in my wallet. So I put it in swap.hive : SIM liquidity pool.
beeswap would do a calculated breakdown of my participation in the pool. With a little under 51 swap.hive to 81,000 SIM I am earning approximately $0.227 in rewards. The rewards are in SIM, WINE, MONEY, STAR, NFTM, BXT tokens. All the rewards are paid into my Hive-engine account daily. This provides me approximately 19.7% APR in rewards.
You get the idea now right? Just for putting in liquidity in these pools you can earn daily rewards.
Conclusions
For veterans of farming liquidity pools are aware one of the main reasons to partake in pools is to earn rewards. Tribaldex have pools and allows anyone who wish to provide rewards for specific pools to do so with ease. Hence many who want to promote their Hive secondary token or simply support a given pool will distribute rewards to participants.
In addition the creator of beeswap @gerber has also introduced a secondary token called BXT that are rewarded to participants for specific pools. The BXT if staked earn daily Hives from the fees the exchange earns for swapping Hive for swap.hive and vise versa. This type of operation is very similar to many of the most popular liquidity pool exchanges. A native token for the exchange that earns a passive income for simply owning it.
Hive liquidity pools are a hidden gem since they can earn passive income and no fees in swapping between assets. There is a low fee of 1% for deposits and withdraw of tokens through Hive-engine. However the exchange has a lot of pairs to trade from. Example list of some out of Hive ecosystems that is also available to be swap are listed below:
The exchange continues to grow on a daily basis and is becoming a go to space for users to swap and earn without having to leave the Hive ecosystem.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
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Being a newer Hive member I seem to catch myself assuming that things have always been here like Tribaldex. Tribaldex went online right around the same time I came to Hive.
Hive has grown quite a bit since its creation. A lot of the common tools you see have been refined while others just ntroduced. Tribledex is quite new relative to the overall Hive ecosystem. You continue reading through many other veteran Hive bloggers and you will know more. I by no means am an expert and learning too myself. Just today I found out beeswap.dcity.io got an interface to Hive-Engine and easier to use. Will post on that in the near future. lol.
That is really cool 👍
Hi I'm really curious about learning more tribaldex nuances.
Are there AMM swap fees like other protocols here? How are fees and APY generated?
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I have been using the swaps for a while now and to my knowledge they do not inccur fees. The APY is generated by token holders or creators who choose to reward participants for particular pools. For instance a swap.hive : neoxag pool the creator of the neoxag token puts in a fixed amount of swap.hives to be distributed to participants of the pool daily for one year. Others have their own tokens that want to get a distribution would also provide rewards. BXT is a native token of beeswap allowing holders to earn passive income is just another example. Basically out of pocket money from whales being distributed down the food chain. I am partaking in multiple LPs and earning some where close to $3 in secondary tokens daily while putting in less than $500. This is a hidden gem in Hive ecosystem.
I think the LPs should be the ones that will give the market value for the tokens due to their strong liquidity and the low gap between BUY and SELL. The old Hive-Engine simply tricks showing a price that is not significant due to its low liquidity.
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I agree and would go even further by saying Hive-engine trading should be abolished. Have price charts follow the swaps instead and volumes buy/sell based on swaps. The instant trades and ease of funds is partly why LPs are so popular in the DeFi space.
!LUV !PIZZA
(4/4) gave you
@logicforce
This is pure dynamite!
I have been looking for an investment like this for a long time, and it turns out that in Hive I have it in front of me, now I know what to do with all the tokens I have in my wallet, I can bet them in the pools and generate profitability, this although it will not make me rich if it will make me constant.
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Beeswap.dcity.io has a .25% fee to get in or out.