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RE: What is The Trade.io Liquidity Pool?

in #trade-io7 years ago

Ya cause if it is isn't I wouldn't put in any BTC. But you could still do well just putting in a lot of their tokens. I would think that their value will rise if this exchange is popular. The one think i don't really understand is how the pool makes them money. I do see how the exchange would make money but what are they doing with the pool cash.

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From what I can understand, the pool is there to help investors who want a little more privacy in their investing and who don't want to move the markets by dropping huge sums of cash in at once. The pool, being liquid, won't move the market as much with a huge investment. So the cash in the pool helps the exchange facilitate big trades. So if investor A exchanges BTC for Dash and Dash goes up, the exchange wins. They'll pay pool contributors interest in Dash. That's how I understand it.