KuCoin has recently launched the latest of its new projects: Pool-X. As an independent subsidiary incubated by KuCoin, Pool-X is the next generation PoS mining pool supporting lockup crypto transactions. With the aim to stimulate the future development of the PoS ecosystem, Pool-X offers services including but not limited to: liquidity trading market, node integration, and operational solutions.
What Is Pool-X?
Pool-X is a trading platform where users can take part in staking pools and operate nodes. Unlike other staking platforms, users on Pool-X are free to unstake their tokens at any time, providing an opportunity to adapt to the changing market conditions, similar to KuCoin’s own Soft Staking program. This is possible through the use of liquidity certificates, which essentially represent ownership of a certain amount of staked tokens and can be traded with others in order to receive the tokens.
However, it goes beyond just a trading platform. The Pool-X ecosystem was created as a means to facilitate the development of the staking market as a whole. Services such as the node supermarket, where users can find and join nodes, or the multi-currency wallet, which allows users to store their tokens, make the platform much more convenient and user-friendly.
Liquidity Services On Pool-X
Pool-X’s different liquidity-focused services enable the platform to operate smoothly and allow users to withdraw staked tokens at any time. First, there is the Liquidity Evaluation System. As the name suggests, the Liquidity Evaluation System measures the liquidity of each cryptocurrency that is integrated with each Pool-X node. This system adjusts the allocation from staked mining, specifying the liquidity of the asset and forming the index parameters through reading the open order price and depth on the target exchanges.
There is also the Liquidity Trading Market, a liquidity matching mechanism for users who hold staked tokens on the platform. It is through this trading market that users are able to redeem tradable cryptocurrencies in the short term by placing an order. Once the order is met, it is then possible to exchange the assets with the user paying an additional fee in POL on top.
What Is POL Used For?
Along with the new platform, there is also a new token that forms the heart of the Pool-X ecosystem. The POL token (Proof of Liquidity) serves as credits for Pool-X, helping to record the flow of liquidity certificates and working as the payment method for liquidity bids in the aforementioned trading market. Ultimately, POL was created to cope with the inadequate liquidity of staked crypto assets.
POL tokens are used throughout Pool-X. Firstly, it is the payment method of the liquidity marketplace. In this marketplace, liquidity certificates, which record the number of tokens being staked by a user, are freely traded with others in the case that a user wants to withdraw their staked tokens. POL is used as the currency for these trades, being paid by the liquidity bidder to the liquidity provider.
Node Search Optimization is another use case for POL. As more nodes join and the market grows, competition between nodes will increase. Search optimization will help nodes to get more attention from users and stand out from the rest. Demand for this service is expected to rise alongside the market and payment for the service will be made at least partially in POL.
A third use is as a payment method for technical services. As the platform begins to mature and the technology improves, Pool-X will look to offer full-set tech and operational solutions for new nodes joining the platform. With this, Pool-X will be a step closer to becoming a full-service platform for the staking ecosystem, providing a trusted source for these services.
Finally, the fourth use of the currency is for the POL Public-chain Interoperability. Following the launch of the POL mainchain, at a time where the technology has developed and matured, this system will record and validate the transactions of certificates across various chains. POL, as the native coin of the chain, will be used as the incentive for this.
How To Obtain POL
Now we know what POL is, but how can users get it? As to be expected, there are a few ways in which users can get POL. One method is to take part in the LockDrop activity, which involves depositing tokens to a specified LockDrop address and holding it for a period of time.
For taking part in staking mining, users are also able to earn a LockDrop allocation equalling 50% of the daily POL allocation. In addition, if a user stakes their assets on Pool-X, they will not only get the stake rewards but also some POL. Next, users who hold POL can obtain more by taking part in certain activities including lockups and voting of POL nodes. Finally, POL is paid as a fee in the Liquidity Trading Market.
Where Do They Get Their Value?
The token value of POL is market-orientated, in that the price is determined by its supply/demand. For the most part, demand for liquidity is positively correlated to the volatility of the cryptocurrency market, as sudden changes in the market encourage users to withdraw the assets to trade. Accordingly, the demand for POL fluctuates along with liquidity demand: stronger demand is likely to boost the price of POL, while weaker demand may lead to a reduction. No amount of POL is pre-reserved by any group or specific people, meaning that everyone has an equal chance to get a slice of the cake, so to speak.
Interested in Pool-X?
Pool-X has a lot on offer for users who are interested in taking part in the staking ecosystem. Whether they are looking to run a node, or just to stake and earn rewards, this new platform from KuCoin is able to facilitate this more conveniently than anywhere else. With benefits for all parties such as anytime withdrawals of staked assets without sacrificing rewards, solutions for low liquidity problems in staking projects, and a variety of services for nodes, Pool-X makes a clear case for being the best staking pool platform available.