Learn with Alium: How to Provide Liquidity and Generate Income

Posted on 22.07.202220.10.2022 by Alium Finance

Previously, we shared with you the definition of Liquidity and explained the Hybrid Liquidity model implemented on AliumSwap, as well as how it works with Multi-chain DEX. For today, we will support you with more information about the definition of a Liquidity Pool, who are the liquidity providers, how to generate income from providing liquidity, as well as a simple guide for those who are on the way to becoming a liquidity provider.

Let’s start from the beginning…

About Liquidity Pool

To remind you, “liquidity” is a simple term used in a financial market as a measure of how quickly or easily a cryptocurrency or any asset can be converted to cash or other assets without difficulty or a significant impact on the market price.

Let’s keep in mind that

Low liquidity levels indicate high market volatility, which can result in rapid price surges for cryptocurrencies.
A high level of liquidity indicates a stable market with low volatility in the price of the asset.
With increasing cryptocurrency adoption and wide usage as a form of payment, there will be an increase in cryptocurrency liquidity.

Liquidity is one of the major requirements for all tradable assets, including cryptocurrencies, as it allows them to be traded quickly. So, what about the liquidity pools?

A Liquidity Pool is a number of tokens in a form of pair that is used to provide liquidity and designated by the token pair it represents. For example, ALM-MATIC is a liquidity pool that consists of the liquidity provided for the pair of tokens ALM (Alium Token) and MATIC (Polygon Native Token).

And this is when liquidity providers come to action….

About Liquidity Providers

A liquidity provider, also known as Market Maker, is someone who helps with the decentralization of trading by providing crypto assets to platforms. Liquidity providers are those who are always willing to trade their assets, by providing liquidity and opening trading opportunities for users. Liquidity providers (LP) receive LP tokens, which are representing the amount of liquidity provided.

One of the major points for liquidity providers is that they can withdraw their liquidity anytime they want, from the liquidity pools, and It is important to mention that the assets provided are locked with the platform for the amount of time the user decides to provide liquidity.

*How to Provide Liquidity in 3 Steps with AliumSwap*

How to Generate Income from Providing Liquidity

AliumSwap Multi-chain DEX has one of the lowest commission fees on the market with some great options for income. DEX charges 0.25% on every trade within the same blockchain, then reverts back to the liquidity providers at 0.2%, where the income is distributed proportionally among the LP token holders.

For example, In the last 24 hours, there are $100k fees generated on DEX for the ALM — MATIC liquidity pool. These fees would be distributed among the Liquidity Providers who hold the LP tokens for this particular pair. Therefore, you can get more benefits and reach higher ROI if you are a Holder of a few LP tokens for the MATIC — ALM pair.

Still here and wishing to become a Liquidity Provider? You can make try it out and start your journey as a Liquidity Provider by following our short step-by-step guide.

Step 1. Go to Liquidity Menu and Click “Unlock Wallet”

Step 2. Click Add Liquidity and select the Tokens

Step 3. Fill in the amount of tokens and click “Supply”

Confirm it and become a liquidity provider. Open new opportunities to generate income together with AliumSwap Multi-chain DEX.

Summary

As more people provide liquidity, it is ensured that users can buy/sell that asset by swapping it with other tokens for which the liquidity pair has been created. We want to make sure that our users are able to trade their crypto assets to the best of their ability, to maximize their profit and minimize their losses.

Learn more about us:

Official Website https://alium.finance/

Docs: https://docs.alium.finance/

Blog: https://blog.alium.finance/

Twitter: https://twitter.com/AliumSwap

LinkedIn: https://www.linkedin.com/company/alium-finance/

Telegram Chat: https://t.me/aliumswap_official

Learn with Alium: Hybrid Liquidity Explained

Posted on 22.07.202220.10.2022 by Alium Finance

Since cryptocurrency trading and other DeFi features have increased in use, there has been an influx of new terms most of which people have no idea what they mean — words like liquidity, liquidity aggregators, liquidity pools, and now, hybrid liquidity aggregators.

For better understanding, we will be breaking down these concepts in detail, starting from the basics.

What is Liquidity?

Liquidity is a simple term used in a financial market as a measure of how quickly or easily a cryptocurrency or any asset can be converted to cash or other assets without difficulty or a significant impact on the market price. To further break it down, Forex is considered a liquid market considering the volume of daily transactions in comparison to real estate, or rare artifacts which are considered illiquid because they are not easily sold off or require a long process.

Now to cryptocurrency, stablecoins, Bitcoin and Ethereum have high trading volumes compared to most altcoins. This shows they can easily be traded without a significant impact on their prices. Liquidity is critical for all tradable assets, including cryptocurrencies, because it allows them to be traded quickly. Low liquidity levels indicate high market volatility, which can result in rapid price surges for cryptocurrencies. A high level of liquidity, on the other hand, indicates a stable market with low volatility in the price of the asset. With increasing cryptocurrency adoption and wide usage as a form of payment, there will be an increase in cryptocurrency liquidity.

Sounds too simple? Well… it’s actually that simple.

What is a Liquidity Aggregator?

A liquidity aggregator is a piece of software that enables users to access a pool of buy and sell orders from multiple liquidity providers/pools at the same time. Due to cryptocurrency market volatility, assets can be offered at different prices on different platforms.

The aim of aggregators is to allow crypto traders to buy or sell an asset at a price near the market average. For both the liquidity provider and the receiving counterparty, computer algorithms can be used to tailor the price streams to meet their needs.

What are Hybrid Liquidity Aggregators?

A Hybrid Liquidity Aggregator is exactly what it sounds like. In order to give traders the best possible pricing, a hybrid liquidity aggregator combines liquidity from both centralized and decentralized exchanges. With this, the trader will be able to place an order at the best possible price with little slippage.

Hybrid Liquidity Feature by AliumSwap

Due to liquidity problems in the market, AliumSwap has created a Hybrid Liquidity feature as a solution for its decentralized AMM exchange with multi-chain options, and cross-chain features. Multi-chain DEX allows users to trade any cryptocurrency from one token to another within the same blockchain, or exchange their assets by using the cross-chain feature. To fully understand what I mean, current DEXs AMM (Automated Market Marker) offer their users unique advantages at the expense of enjoying maximum profits and benefits. Also, DEXs suffer severe setbacks due to a lack of interoperability in transferring assets and platform interaction. And this is when Hybrid Liquidity features come into action…

How Hybrid Liquidity works:

If the price impact on a chosen pair surpasses 5% or there’s no such liquidity pool on AliumSwap, the liquidity pool of the other exchange will be used.

https://cdn.embedly.com/widgets/media.html?src=https%3A%2F%2Fwww.youtube.com%2Fembed%2Fg-j7yzUYvZg%3Ffeature%3Doembed&display_name=YouTube&url=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3Dg-j7yzUYvZg&image=https%3A%2F%2Fi.ytimg.com%2Fvi%2Fg-j7yzUYvZg%2Fhqdefault.jpg&key=a19fcc184b9711e1b4764040d3dc5c07&type=text%2Fhtml&schema=youtubeHybrid Liquidity Feature Release

Solving these challenges and more was the drive behind building a revolutionary project like AliumSwap.

Note: An automated market maker (AMM) is a decentralized exchange (DEX) technology that prices assets using a mathematical formula. In contrast to a traditional exchange, where assets are valued using an order book, assets are priced using a pricing algorithm.

Current Achievements of AliumSwap

Since its launch, there have been several significant progress and currently, the company’s Multi-chain DEX supports 10 blockchains, namely — Polygon, BnB Chain, Ethereum, HECO Chain, Fantom, Metis Andromeda, Moonriver, Moonbeam, Aurora, and OKC. Cross-chain feature together with the hybrid liquidity feature makes AliumSwap safe and secure from liquidity problems associated with DEXs.

Now that I have explained the basic terms surrounding liquidity, jump on our DEX and try it out.

Learn more about AliumSwap:

About Us: https://docs.alium.finance/

Official Website https://alium.finance/

Blog: https://blog.alium.finance/

Twitter: https://twitter.com/AliumSwap

LinkedIn: https://www.linkedin.com/company/alium-finance/

Telegram Chat: https://t.me/aliumswap_official

How to Use Cross-chain Feature by AliumSwap

Posted on 22.07.202222.07.2022 by Alium Finance

Here is everything you wanted to know about easy, reliable, fast, and safe trading on the most feature-packed multi-chain DEX on the market!

Does it happen to you that when you mention “Token” in a casual conversation — people still ask you what is this? It happened to me a few days ago. So, there I was, explaining it to a person who is not only my friend but also a business and a real estate owner who is generally very financially literate. This just shows how early we are.

With this in mind, we realize that even some things that may seem simple to an average cryptocurrency investor incite fear in others. People are rightfully worried about losing their money, no matter how small their investment is — that they would rather sit on it, do nothing and watch the inflation eat it away at an even faster rate.

Have no fear, the HowTo is here!

We have prepared a little tutorial to demonstrate how to use the upcoming cross-chain feature on AliumSwap multi-chain DEX:

Let’s say, we have some BNB lying around in our wallet and we want to cash it out into USDC on Polygon

First of all, you need to connect your wallet and choose BNB Chain because this is where our tokens currently residing

2. Secondly, you need to select any token you would like to swap. In our case, it’s going to be SHIB

3. Next, we will enter the token that we wish to swap to. In our case, we want USDC on Polygon Network, so now our screen looks like this:

4. Enter the number of tokens you wish to send or receive.

Prices vary and sometimes we want to protect ourselves from entering the trade under unfavorable terms. To gain greater control over the price and the time for the transaction — we can set the “slippage” that will stop the trade in case the price deviates too much from our desired price and the deadline to avoid getting into the trade too late.

5. Finally, once you entered your amount of token you need to proceed with confirmation of the transaction on your wallet.

6. Now, all you have to do is to confirm and swap your tokens. The process will take a moment and transactions can be tracked.

So, let’s start trading by visiting AliumSwap at https://alium.finance/swap/

Visit us at the links below:

Official Website https://alium.finance/

Guide: https://docs.alium.finance/

Blog https://aliumswap.medium.com/

Twitter https://twitter.com/AliumSwap

Telegram https://t.me/aliumswap_official

LinkedIn https://www.linkedin.com/company/alium-finance/

AliumSwap Integration with OKC

Posted on 01.07.202204.07.2022 by admin

AliumSwap aims to provide access to advanced tools and features. One of these tools is AMM multi-chain DEX that will allow users to trade assets within blockchain with low commissions and transfer them between different networks seamlessly and safely by using the upcoming cross-chain feature. The project pays a lot of attention to security measures and passes audits by CertiK, Hacken, and Chainsulting.

One of the latest solutions developed by the company is Strong Holders’ Pool, which acts as a battle royal for token holders and a customizable smart staking solution for the company. It will also be launched on the OKC network, an excellent opportunity for OKC-based projects to gain more holders, increase TVL, and add more value to their projects.

AliumSwap operates on BNB Chain, HECO, ETH, Polygon, Fantom Opera, Metis Andromeda, Moonbeam, Moonriver, and Aurora. Now, it’s time for the next blockchain integration. During the past decades, OKXChain evolved and AliumSwap considers this network as one of the growing chains with the most potential to build products on. Naturally, our next choice to move forward was to deploy on OKXChain, also known as OKC!

What is OKC

OKC is a secure & programmable smart contracts platform for next-generation decentralized applications, backed by OKX, one of the largest crypto exchanges. The technology built into the chain was designed explicitly for high-performance trading activities and financial services with lower cost, making it an excellent match for many DeFi protocols, NFTs, and other Metaverse applications.

Advantages of OKC

High Performance: Based on enhanced Tendermint and Delegated Proof of Stake (DPoS) consensus that can support up to 3,000 Transactions per Second (TPS), DeFi (decentralized finance) applications shall reach their full potential at extremely low cost.
Compatibility Doubled: OKC will support Inter-Blockchain Communication (IBC) protocol that — together with the Tendermint consensus algorithm, featuring instant finality — can be used to realize value transmission between Cosmos ecosystem within seconds. OKC is also 100% EVM compatible, meaning that decentralized app (DApp) developers can deploy their DApps from the Ethereum network (or other EVM compatible blockchains) to the OKC with ease. Smart contracts written in Solidity can function on OKC as they do on Ethereum.
Developer Friendly: OKC is completely open-source. Anyone can read it, check on the progress, comment on it, and help build the ecosystem. OKC also provides native oracle protocol and industry-leader Chainlink for maximum flexibility to access price feeds.
Secure: The OKC team offers a reliable smart contract auditing service, making it a genuinely decentralized protocol that avoids the centralization risks of most blockchain networks today.

OKC already has a wide network and a great community. AliumSwap’s team expects that this integration will attract new business partners and traders, and represents the first steps, toward the upcoming trading opportunities from this integration and future partnerships and collaborations.

Follow the Official Channels:

Official Web: https://alium.finance/

Docs: https://docs.alium.finance/

Blog: https://blog.alium.finance/

Github https://github.com/alium-official

Twitter https://twitter.com/AliumSwap

Telegram: https://t.me/aliumswap_official

Linkedin: https://www.linkedin.com/company/75861509/