Feels really nice indeed witnessing how open technology works in real life without sharing in advance any plans with anyone (and that was also part of the plan in some sense). It proves that if one uses the tools and features of this blockchain (and side-chains), one can make tons of valuable things with them, and many are even able to understand them without much explanation.
😍 ATX:SWAP.HIVE pool
I have started the ATX token a very long time ago (was it 2 years already? can't recall, but I will make sure to find the date and add it to the gitbook I am building), with the intent of having a direct way to show people how things work around the chain. Then with time, the importance of that idealized help became way more realistic and impactful that I thought, and it was inevitable the way I had to go.
Going forward... even if slow, no matter for how long!
Accomplishments
You all helped (and are helping) contributing liquidity to the pool, and obviously you are enjoying the rewards, which I knew that it had to be part of the way to go forward, but there's still lots of mysteries I will release in the future. And that's how I want to progress with this. I don't want to make promises because that drives the wrong attention for what I am doing and the aim is till to help people, so I will use things as good examples for everyone to "try", explore and if there is people that wishes to make it more serious, then its up to them.
The $1k milestone!
$1000 of value is something already, that I need to take seriously because its everyone dedication and tokens. The path is just beginning, but 5 years of just a simple pool distribution (for now) is quite a long period, and we have just started, so well done everyone! Keep helping the way you can and using the pool as a good example to demonstrate, captivate or show others how it works. A great example would be to just try in front of anyone you know and never seen hive in action. Use keychain, beeswap, whatever you feel more comfortable! This is a good (slow) natural (but effective) way to advertise hive and expand our community.
Others may do more with other strategies, and I am not arguing this is the best one, but if you can't commit with much (time) like me, then I can tell you even helping on a 1-by-1 basis, is a major help and feeling of realization (you will see what I mean in the future).
So, how to use pools?
Very simple. And I was meant to post about this already, but here it goes.
Definition
Pools (or diesel pools) are just pairs of two tokens liquidity that keep their balance (on the pair) depending on the swaps that happen on that pool. Example, if there are 50% share of both tokens in the pool, lets say, 10 ATX and 10 SWAP.HIVE, then it means that the price of 1 ATX will be 1 SWAP.HIVE.
Swaps
When you swap tokens (ATX for SWAP.HIVE or vice versa) you are giving on token to the pool in exchange of the other. Meaning that, the pool that had previously a 50% ratio, will change depending on the swaping direction. If you provide ATX in exchange of SWAP.HIVE, the pool will have less SWAP.HIVE (less than 10) after your swap is executed, and vice versa.
Adding an Removing Liquidity
When you add liquidity to a pool, you will have to match the current ratio of exchange. So for this example, if it was still 50%, then if you want to add 1 ATX, you will need at least to match that with 1 SWAP.HIVE. If after adding liquidity, the ratio changes due to swaps, then when you want to remove that same liquidity your removed tokens will be different (either >1 ATX and <1 SWAP.HIVE or vice versa for this example).
Rewards in Pools
On Hive-Engine, one can start a distribution over a pool pair. When one creates this, it has to set a time (ATX:SWAP.HIVE has a 5 year one) and set a bonus if desired. This bonus acts as a boost percentage to everyone that keeps their liquidity in the pool (increasing your shares and hence your APR relative to any changes from others liquidities). Then, on top of the distribution, anyone can add tokens to it (non-refundable). Those tokens are distributed daily (everyone 24 hours) based on the shares that everyone has on that pool.
In resume, the sooner you add liquidity to a pool that has bonus, the "higher" advantage in shares you will have relative to others. Obviously this is relative to your liquidity portion, hence if you add very little liquidity, your bonus is relative to that amount. Also, be aware that if you remove liquidity and you are also reducing that bonus (in absolute value of shares) because its always dependent on for how long you maintained the liquidity in the pool.
Try it!
If you want to start playing with pools, give it a try with ATX:SWAP.HIVE for example:
- 👉 Try swap ATX/SWAP.HIVE
- 👉 Try add liquidity to ATX/SWAP.HIVE
- 👉 Try removing liquidity from ATX/SWAP.HIVE
- 👉 Try checking how much rewards you will get from your liquidity at ATX/SWAP.HIVE
If you want to win free $ATX tokens, check @forykw posts on the #HPUD post (around the initiative of powering up 10 HIVE every first day of the month), and you will see how easy is to get some to try and have some fun. The one for November is almost here, so stay tuned for it if that's on your radar.
Side note
You can also swap tokens now with @keychain tool. And oh boy... that is such an amazing way to brag about how you use hive in my view. I get to swap stuff on the fly, in front of people that say they are waiting on their transaction to confirm, and they become... speechless. Then they ask me to repeat because they think I might be having some sort of "free" runs... and I keep doing until they get bored... LOL.. real fun to watch their faces! Zero cost for me (in transactions)!
Remember, the tool is as good as its user. Learn how to use it... and you will become a master!
Forky out...