By mid-November 2021, users across the world had staked over $170 billion in various DeFi dApps across Ethereum, Binance Smart Chain (BSC), Polygon, and other public blockchains
Considering the record low-interest rates and the restrictions against retail investors from accessing certain products in traditional finance, DeFi became an alternative for many. The attraction at that time was the high yields promised by DeFi protocols. At one point, DeFi yields offered by some platforms reached over 1,000% APY. This was high and, therefore, very irresistible.
Come 2022, Ethereum, Bitcoin, and other coin prices crashed to record lows. Falling prices also impacted DeFi. And by the close of last year, the total value locked (TVL), that is, assets managed in various DeFi "liquidity protocols", had more than halved to around $45 billion.
What is a liquidity pool?
But, hold on… what is a liquidity pool that's so important for DeFi, especially decentralized exchanges (DEXes) like Uniswap or PancakeSwap? In simple terms, a liquidity pool is a collection of funds locked in a smart contract to facilitate trading, lending and borrowing. For example, there is ETH/USDT and BNB/ETH pools where you can swap ETH for USDT or BNB for ETH, and vice versa, without depending on a third party to facilitate the transaction.
Last year, following the collapse of crypto prices and the failure of several cryptocurrency exchanges and lending platforms like FTX and Voyager, users chose to withdraw their coins from these exchanges. The outflow was significant. Presently, billions of dollars of various coins like ETH or BNB are lying idle in the hands of holders.
Despite plunging prices and DeFi losing assets, there is hope. The market is recovering. What's more important is that the promises of DeFi of ensuring everyone can participate and take control of their finances live on.
Introducing Liquid+ and Baskets
Liquid Crypto's Baskets are the first in the industry and unique. In addition, you can invest in different chain pools in one basket. Anyone with assets can transfer their coins to Baskets by connecting to a compatible wallet like MetaMask.
Liquid Crypto is building on this foundation and is releasing several DeFi products to make participation easy. You don't have to be a guru in investing or be a developer with years of experience in coding to take part in DeFi. Even if you have no history of DeFi or crypto, you can confidently use Liquid Crypto's solutions and earn returns.
Liquid Crypto’s flagship product is Liquid+, designed for users to earn yields on their crypto holdings and compound them. They use smart contracts, that is, code that removes the need for intermediaries like banks or brokers. Because of smart contracts, it means you are always in control of your coins rather than having to rely on a third party.
Liquid+ is unique in that it allows users to access over 450 liquidity pools across top DEXes in multiple blockchains. Users can connect using wallets like MetaMask, or Liquid Crypto's Wallet, which supports buying tokens such as ETH using fiat. All you have to do is deposit coins — from any of the nine blockchains, including Polygon, Celo, Avalanche, Ethereum, Binance Smart Chain, or Fantom; Liquid Crypto will handle the rest. There are no set minimum investment levels. Provided the amount you want to invest exceeds the minimum fees charged by the blockchain, you are good to go. Even $10 is enough to get going.
In addition to the 450 plus liquidity pools, users can also invest in any of the ‘baskets’ on offer. Baskets are aggregated index baskets that have been curated by Liquid Crypto in accordance to their risk and return levels. This allows users to choose a basket to deposit funds into based on their risk and reward appetite. Each basket listed on Liquid Crypto's dashboard is carefully selected and categorized to ensure stability and diversity in rewards for users. As well as being able to invest in baskets, users can also invest in different chain pools in a single basket, a first of its kind in the industry.
Presently, Liquid Crypto offers three baskets, "Stable" "Balanced" and"Growth". The “Stable” basket comprises the top 20 stablecoins, the "Balanced" Basket comprises the top 20 stablecoins and tokens, and the "Growth" basket has the top 100 altcoins. Liquid Crypto will also soon launch the “Community” basket whereby any user can curate their own baskets, make it public for other users, and earn a portion of rewards of the revenue generated.
Sounds interesting? Connect with Liquid Crypto today.
About Liquid Crypto
Liquid Crypto is a fully decentralized exchange that aims to unlock the real value of decentralized finance for all investors. Liquid+, its core product, has been built on a foundation of transparency and security with a user-friendly interface, custodial and non-custodial wallets, and cross-chain and multi-chain options. Through its unique custom aggregated baskets, it makes wealth generation and investing accessible for everyone.
For more information, don't hesitate to get in touch with:
Company Name: Liquid Crypto Pty Ltd
Contact Person: Meagan Henderson
Email: Send Email