MeowSwap Feature Release: Liquidity Pools
Following the updates and technical improvements to the L2 infrastructure of the DEX that were carried out on February 9th, we are excited to announce the introduction of the first new pool to the exchange. With the launch of this initial pool the MeowSwap community will be able to provide liquidity to both the MEOW/ADA and OCC/ADA pools!
The ability to provide liquidity to these pools is a trial for the impending ability to create your own pools for custom token pairs.
The pools will go live tomorrow — Wednesday, 16/02/2022.
What new options does this feature provide to the community?
You can now provide liquidity to all pools available on the exchange and earn token-denominated yields, meaning that in return for providing the liquidity to the pool, you receive a percentage of the trading fees accrued by that pool.
We have been waiting patiently for our security audits and infrastructure updates before enabling this feature — as always the safety of your funds is paramount to us. We are incredibly excited to finally allow our users to trade and provide liquidity to the new pools! Please note that the ability to create your own liquidity pools will follow very shortly after the release of these initial pools.
Launching these new liquidity pools is an important milestone for the MeowSwap development team. This functionality will empower the Cardano community to use and manage their accumulated assets in ADA and other Cardano Native Tokens.
The MeowSwap exchange is designed for fast and secure operations with Cardano Native Tokens; as such you can expect the most seamless and easy-to-use trading experience the Cardano blockchain can provide. As with all transactions on the MeowSwap DEX the new pools will leverage our super-fast and scalable L2 solution; taking transaction logic off-chain while maintaining the unparalleled security of Cardano by never moving the assets being traded off the L1.
In the very near future, we plan to give users the freedom to create new liquidity pools for their own token pairs. Such a pool management mechanism will become available in one of our forthcoming upgrades.
The initial new pool will be the Cardano Native Token variant of Occam.fi (OCC); this will be available as the pair OCC/ADA tomorrow: Wednesday, 16/02/2022. You will be able to provide liquidity to any pool enabled on the exchange after tomorrow including the currently available MEOW/ADA pool and the new OCC/ADA pool.
In addition we will be initiating a major MEOW farming campaign, the details of which we will provide soon, please stay tuned!
AMM-based DEXes deliver one of the most innovative trading experiences available in the financial space today. The automated market maker mechanism simplifies and accelerates many traditional exchange processes, enabling the exchange of assets not presented in classical finance. The MeowSwap team is excited to pioneer one of the most interesting trading protocols available today and will continue enhancing our community’s trading and financial journey.
MeowSwap is based on the Cardano blockchain which continues it’s development in the ‘Basho era’ of scalability to become faster and more usable throughout 2022. In this mission to create better, faster and more technologically advanced software, we are working in parallel with Cardano blockchain development teams, bringing new financial solutions and asset management options for crypto holders and the Cardano community as a whole.
*Bear in mind; the APY returns of this feature will vary depending on the volume traded in the liquidity pool you are providing to.
**There are also some risks to liquidity mining — notably ‘impermanent loss’. This means that due to any price variance of the assets in the pool; the assets may in-fact, be valued less in dollar equivalent when/if you decide to remove them from the pool even after taking into account your rewards. There are many superb articles (too many to list here) regarding the risks of liquidity mining, so make sure to educate yourself fully before committing any funds.