A Liquidity Pool is a collection of cryptocurrency coins used to engage in the collection of fees from within the trades. These crowdsourced pools of cryptocurrencies or tokens are locked in and secured in unique smart contracts, which are used to facilitate trades between the assets on a decentralized exchange (DEX). Instead of traditional markets of buyers and sellers, many decentralized finance (DeFi) platforms use automated market makers (AMMs), which allow digital assets to be traded in an automatic and permission-less manner through the use of liquidity pools.
Trades are executed between USDC and ETH on the Uniswap platform. Whenever these trades occur, transaction fees are collected, and liquidity providers earn a percentage of these fees as passive asset growth, linearly proportional to their pool contribution. Liquidity Partners receive a weekly partnership fee starting at 0.75% on their Ethereum (ETH), Bitcoin (BTC), Shiba (SHIB), Ape Coin (APE), and USDC (*Limited time offer & other promotional offers may apply). Partners can choose either to receive weekly payouts or opt for the “Hyper-Compounding” option. My Liquidity Partners also operates a BTC pool for those who want to participate in a larger yield pool, with a minimum deposit of 1 BTC. Each partner must complete a full KYC approval prior to contribution, with no lock in period.
Liquidity Partners can earn up to 2.5% per week on their initial contribution, in accordance with the value of the funds they have in the pool. My Liquidity Partner is able to mitigate risk from their partners through matched coin allocation. All permanent risk associated with pool management is absorbed within the platform, and not by the individual Liquidity Partner. The Total Value Locked (TVL) is $350M and steadily increasing.The 24H trading volume is currently over $50+M, and steadily moving with an upward trajectory. This creates an opportunity to collect $400K worth of fees within one pool.
In lieu of receiving the weekly 2.5% pay-out, transferred as USDC to the Liquidity Partner’s wallet, partners may also elect to re-stake their weekly commission. Re-staking means that the weekly pay-out is used to purchase more assets every week, increasing overall asset count in the pool. My Liquidity Partner has arranged its pool to hyper compound, with returns of 117% APR & 218% APY.
Partners also receive a MLP Token. The MLP token is a loyalty reward token for existing Liquidity Pool Partners as a show of appreciation for Partners’ participation in the program. The token allows those who can’t afford to participate in the pool to join with the MLP token and reap rewards from the platform, whilst having access to immediate liquidity. Token holders can donate their token to the Ruby Family Foundation, which is a fully transparent blockchain-based foundation wherein 100% of the funds are allocated towards global outreach programs for children and mothers. By donating reward tokens to the Foundation, partners are able to act as a direct contributor to the Foundation’s Mission efforts.