Hi guys, LM APR is reducing everyday as more and

Question

DeFiChain - International

Thabish

Hi guys, LM APR is reducing everyday as more and

more people join the pool, how far can it go down before becoming stable. ?

#blockchain #cryptocurrency #defichain #english

0

18.02.2022

3 ответов

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Thabish Автор вопроса

Then what's the use of providing liquidity ?

0

18.02.2022

DanieL BaptistA

Thabish
Then what's the use of providing liquidity ?

Please remember that DFI supply is capped, so the blockchain emissions which are currently the main source of rewards in LM will eventually dry out. With time and increased adoption, this will slowly be replaced by the transactions fees as reward mechanism for providing liquidity. Anyway, and as @mm_phoenix said, the purpose pf providing liquidity is to power the DEX for the whole community, without DEX there is no basis for the whole ecosystem to start with. Anyone who believes in the project and in the use cases that are being developed joins the project and powers the dex, not only and ultimatelly not for the gross amount of the rewards it may get now, but for the future of the project in which even with less rewards only providing from fees, would be able to say it is having a confortable return. And as always, first movers face the biggest risk but everything working well, as expected and as community in which we are always pushing for such, will also take the best returns 👍

0

18.02.2022

Pho · Accepted Answer

Pho

Thabish
Then what's the use of providing liquidity ?

this makes it possible to use the dex

0

18.02.2022

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Hi guys, LM APR is reducing everyday as more and

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