Some of you asked us for a little tutorial on Binance Liquid Swaps. There, you will certainly take your first steps in the Challenge while being supervised by Binance.
Here is how you can generate additional cryptocurrencies thanks to Binance Liquid Swap!
☞ If you want to know other methods, please consult the article on all methods to make money on Binance.
To get to the tab in question, go to the “ Finance » and click on “Earn Cryptocurrencies” or “Earn” if you are using it in English.
Then you will arrive on this page:
Frequently asked questions about Binance Liquid Swap
It's up to you to select the pair you're interested in (with APY and transaction fees) and provide liquidity directly in the Binance Liquid Swap space.
What is the difference between Binance Liquid Swap and other trading functions?
Binance Liquid Swap is based on a liquidity pool. There are two tokens in each pool, and the relative amount of the tokens determines the price between them. These can be traded as long as there are matching tokens left in the pool. Binance Liquid Swap offers more stable prices and lower fees for large transactions.
How to provide liquidity to Binance Liquid Swap? When can I collect them?
Select a pair from the liquidity pool and deposit an amount (collateral) into it. The system will convert this amount into two tokens, in accordance with the current trading price of the pair in this pool, and then fill the liquidity pool with a certain amount of shares from it. After staking, the pool share can be refunded at any time, this share will also be recorded.
What is the source of income of Binance Liquid Swaps ? Is this income assured?
Staked tokens receive a share of fee revenue from the transaction pool. At the same time, staked tokens will receive flexible savings interest. (This is only possible if there is a flexible savings product for them.) However, when the price of the token fluctuates wildly in the market, the holders of these pool shares will not generate the same profits. Therefore, staking is not a risk-free activity and does not guarantee the generation of a profit.
How is flexible savings interest linked to liquidity pool tokens calculated?
At 02:00 (CEST) each day, the principal is calculated according to the following formula: “current assets of the token pool – amount added yesterday + amount recovered yesterday” as well as the interest rate of the previous day of the flexible savings linked to the token pool. If the token does not have a flexible savings product, then it does not generate flexible savings income.
How to withdraw your shares from Binance Liquid Swap?
Once a token pool is added to the pool for a share of it, the pool share can be redeemed back into the same token pool. This action can be carried out proportionally with both tokens or with just one.
When you redeem a single token, a transaction fee will be deducted from the amount of the asset retrieved due to the need to exchange it for another token in the pool (proportionately, depending on the token exchanged).
☞ If you want to know other methods, please consult the article on all methods to make money on Binance.
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