Dive into the Liquidity Pool for Your Share of up to 50% of trade.io’s Success
trade.io officially opens its doors to the liquidity pool. Holders of 2,500 TIO or more are eligible.
As of 9th October, holders of 2,500 TIO or more (the trade.io Trade Token), can now enjoy the success of our platform on a daily basis, through the launch of the industry’s most innovative lending facility, the trade.io Liquidity Pool (LP).
Hopefully you’ve already heard about the mechanics of the pool, where you can earn interest by lending TIO to help keep the trade.io Exchange running smoothly. In the lead up to this new innovation, we’ve had a really enthusiastic response from the wonderful community, with people sending us questions from all around the world.
It’s important that everyone fully understands the LP, why it’s a huge innovation in the crypto space, as well as the awesome benefits you could enjoy by participating.
With that in mind, we’ve rounded up some facts and background on the LP and provided answers to some of the most common questions.
So, what exactly is the LP?
• trade.io’s LP is a lending facility. Participants use their TIO as an access key to enter the pool. After the LP has launched on October 9th, 2018, participants can loan their TIO to the LP.
• In return for the TIO that are contributed to the LP, we will pay back interest to reward these users for their participation. Participants will receive their original principle of TIO back once they choose to exit the LP.
• Interest is paid in any cryptocurrency that trade.io has excess in after utilizing the loaned TIO for that day. This means your interest could be remunerated in BTC, ETH, TIO, or any other cryptocurrencies at our discretion.
*It is important to note that trade.io has full discretion on the assets that are paid
How do I join?
The TIO token is the key to accessing the LP. You need at least 2,500 TIO to be able to participate, and the more you provide, the more interest you are able to earn. Joining the pool couldn’t be simpler.
Step 1: Login to exchange.
Step 2: Complete KYC verification (can take up to 24 hours). LP tab will NOT be accessible until your account has been verified.
Step 3: Click on the Liquidity Pool tab at the top of the exchange once it becomes available.
Step 4: You will have to agree to the LP terms & conditions.
Step 5: Upon accepting terms & conditions, you will be taken to the LP service area.
How do I use the LP?
You can watch a quick overview of how to access the LP and how to use it below.
How am I rewarded for participating in the pool?
• Participants lend their TIO to the LP for the company to make markets and provide liquidity via the balance sheet associated with the loaned value of the TIO in the LP.
• 50% of the funds generated from the operations of the utilized LP TIO, will be distributed to the participants in the form of interest.
• Interest will be distributed to participants of the LP in the form of the various assets that have been generated from the utilized loaned assets in the LP on the trade.io Exchange platform. This includes BTC, ETH, TIO and other altcoins depending on the accumulated assets during that day’s LP loan utilization.
This all sounds amazing! So what’s the potential downside?
Of course, any financial investment carries risks and you need to be sure you understand these before contributing. Crypto markets are extremely volatile, so it’s possible that the LP might not generate anything some days.
There’s a high water mark to protect investors, and no payouts will be made until it’s reached. But, we are committed to minimizing the risk to LP participants: any losses are first covered by trade.io’s own balance sheet. To further protect the LP participants, trade.io also committed 50 million TIO as an additional second layer buffer to the loan participants TIO. Meaning, LP participants principle is only risked if the first two buffers are depleted.
These reserves are substantial: The trade.io balance sheet and the 50 million TIO will be the frontline risk capital should the company earn a loss on a given day.
For more details on the mechanics of the LP, check out the full LP fact sheet here.
Liquidity Pool Q&A
We highly recommend checking out the full text of the recent LP AMA. Our COO Roy Gutshall took over Telegram last Friday (5th October), where he received plenty of interesting questions.
For example, many people asked why they can only contribute TIO to the pool. And indeed it seems that whichever way you slice it, people are all wondering the same thing: “How can I benefit?” Roy took this opportunity to respond with a perfectly executed answer:
“ ‘What is the cost benefit of not participating in the LP?’, should be the question. If you don’t participate, you don’t receive the loan distributions. If you participate you do. Why would any TIO hodler not participate. If the price of TIO goes up, then people can get out and do what they want with the TIO.
However, the future of the LP is not dependent on the existing user base. Don’t get me wrong, we love our community and we are very much appreciative of the continued support but the success of the LP and the success of trade.io is dependent on mass adoption and not just the existing community and existing users. We are strategically positioning our product development roadmap for mass adoption and that is how the LP and trade.io will succeed.”
To join the liquidity pool, sign up or log in to the trade.io Exchange and verify your account by uploading your documents in your profile.
If there’s anything else you want to know, or you just want to get in touch with the team or other members of the community, come join us on Reddit or in our Telegram channel.
#JoinTheTradingRevolution today!
For more information visit trade.io or contact marketing@trade.io
About trade.io
trade.io is a next-generation financial institution based on blockchain technology, and providing the ultimate in security and transparency via its flagship product, the trade.io exchange, as well as its highly sought after ICO Consulting Services and Angel Investment Program. trade.io successfully completed its ICO in January 2018 and raised over 31 million USD from loyal participants and community members who want greater transparency in the financial markets.
