ECL to be listed on Uniswap today
Uniswap listing is a very important step for Euclideum ahead of ArchimeDEX launch. It’s important for all ECL holders, too: now they can benefit from liquidity pool rewards.
Uniswap is the world’s largest decentralized trading protocol, with almost $200 deposited in its liquidity pools. Daily trading volumes reach $60 million. Sure, it’s not much compared to the volumes on Binance, but it’s a lot for a DEX (decentralized exchange).
Why participate in liquidity pools
The main advantage of listing a token on Uniswap is that there will always be liquidity for trading. As you may know, DEXes in the past suffered from low liquidity: people wanted to sell or buy a token but it was hard to find a counterparty to fill the order. On Uniswap, this problem doesn’t exist. The price depends not on supply and demand but on how much liquidity is deposited.
For you as an ECL holder, the best thing about Uniswap is that you can participate in liquidity pools and earn rewards. This is how it works: you deposit some ECL in a pool together with an equivalent amount in ETH. This liquidity is used by other people for trading and you earn a share of the trading fees. You can withdraw your ETH or ECL whenever you like.
You can earn 5–7% a year by keeping your assets in the ETH/ECL liquidity pool. In the next few months we also plan to launch additional pools, such as USDT/ECL and DAI/ECL.
We are also busy working on our own decentralized exchange interface, called ArchimeDEX. It will integrate both Uniswap and Kyber pools and their best innovations, such as direct token swaps and adjustable fees. You can already use the ArchimeDEX beta release to claim your free ECL airdrop.
How are pool rewards calculated?
Uniswap charges a 0.30% fee on every trade. It’s higher than on centralized exchanges, but all this money goes to liquidity providers. So the more people trade on Uniswap, the more is collected in fees and the more you earn.
As we’ve said, the price depends on how much liquidity is in the pool. There’s a formula called the constant product formula: (Reserves in ETH)*(Reserves in ECL)=k, where k is a constant. So when someone sends ETH to the pool to buy ECL, the amount of ECL that is taken out depends on how much there is already. If there is a lot of ether in the pool, then ECL will be comparatively expensive. But if the pool is full of ECL and doesn’t have much ETH, the price of ECL will be good for the buyer.
How much you’ll get as a liquidity provider depends on how much you deposit. For example, if there is a total of 100 ETH (and an equivalent amount in ECL) in the pool out of which you deposited 1 ETH + the same amount in ECL, you’ll get 1/100 or 1% of the fees collected.
If you have any questions about our listing on Uniswap, feel free to ask them here in the comments. Remember to tune in to Uniswap tonight after 9 pm GMT or tomorrow to check how ECL is doing. And of course, join the pool and start earning money!