How to become a liquidity provider using stablecoins
What is a Liquidity pool? How to earn from Liquidity pools?
Liquidity pool is a collection of funds locked in smart contract. Liquidity providers (LP) add their digital tokens in a pool to create a collection of fund that are being use in DeFi protocols such as borrow-lend, synthetic assets, yield farming, blockchain gaming, on-chain insurance, etc.
Liquidity pool play an essential part of Automated market makers (AMM) which is an innovation that allows for on-chain trading without the need of order execution or match engine. Basically, the trading you need will be executed according to the sufficient amount of fund available in the liquidity pool. As long as there are sufficient fund in the liquidity pool, your trade will be executed.
The ShuttleOne.Network Liquidity Pool
ShuttleOne.Network is a liquidity pool by ShuttleOne. The ShuttleOne.Network liquidity pool acts as a fund to finance services that ShuttleOne is currently providing to real-world businesses such as loan and remittance.
Liquidity providers (LP) can add stablecoins into ShuttleOne.Network liquidity pool in order to receive an interest rate generated by real world assets collateral. This is one of the higher interest rate options for your stablecoins.
Real-world SMEs businesses (ie. e-commerce, trading, logistics companies) that are in need of working capital will borrow from ShuttleOne using their real-world assets as collateral (commodities, assets, such as rice, trading cargos, energy, etc.).
As a reward for providing liquidity into the ShuttleOne.Network, liquidity providers are rewarded with SZO tokens.
Beside interest rate from stablecoins, token holders are incentivized by holding onto the SZO token as the token value will be increased when more SZO is burnt whenever there is a transaction done via the network.
How to provide liquidity and earn passive income with stablecoins:
What are the incentives of participate in ShuttleOne.Network liquidity pool
1. 10% APY interests on stablecoins
Liquidity providers will receive a fixed interest rate at 10% APY for your stablecoins. Currently our liquidity pools accept USDC, USDT, DAI. We are working to accept more stablecoins as liquidity.
2. Early LP Program — 13.58% 31,237,000 SZO
The early LP program is designed to reward early supporters of the network by supplying liquidity in stablecoins into the protocol. Rewards have a 1.5x better rate of emissions compared to the LP Supplier Incentive as described earlier.
The Early LP Program allocation is only for our early beta users and any unclaimed SZO will be opened up for the LP Supplier Incentive after 9 months from the date of trading. Early LPs are locked for 9 months.
3. LP Supplier Incentive — 14.31% 34,310,660 SZO
The LP Supplier Incentive continually rewards liquidity suppliers to the network. Once the LP Supplier Incentive runs out, new SZO due to payment from our business products will be sent to reward suppliers equally.
This includes 5.763m SZO that is LOCKED in our listing pools upon listing.
Unlocked as Liquidity is supplied into pools.
4. SZO token price
As a liquidity provider, you will be reward with SZO token.
One of the value of holding a token is the increasing value of the token over time. We design SZO token with mechanism that ensure the holders will receive benefits from the project’s growth:
Small market cap & Low circulating supply: On 1 day of trading there are less than 1% of the tokens are in circulation. More than 50% of the tokens are unminted and the rest goes to the liquidity mining rewards that we are serving up for liquidity providers.
Burning mechanism in the SZO ecosystem: Token supply is burnt from the hardcap to ensure that the supply of tokens are properly regulated. In the SZO ecosystem, when a merchant took out a loan, the application will be swapping the stablecoin with SZO, the swapped SZO tokens will then be burnt and taken out of the supply.
Here is a example of the mechanism:
A merchant applies for a loan and was approved for $DAI 2,892
Merchant pays for loan application by swapping $DAI for $SZO 468
$SZO468 is sent to burnt and taken out of the supply.
ShuttleOne connects the real-world with DeFI potential
ShuttleOne is an operating system for digital finance that focus on bringing DeFi to its mass adoption.
At its core a combination of AI and blockchain that facilitates Decentralized asset lending and payments from digital assets to over 80 countries globally, the ShuttleOne network delivers seamless financial services via our partners that solves the fragmentation issues of traditional finance.
Many current DeFI projects are in their early days of inception, which most tokens are circulating within the DeFI ecosystem and never reach the real world. On the other hand, traditional businesses are mostly unable to tap in DeFI potential for their business.
Our primary product, the ShuttleOne Network, is the DeFi lending platform connects crypto holders and businesses. When crypto holders add stablecoins to our liquidity pool, the fund will be used to facilitate services to SMEs business across the region.
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