To ensure enhanced liquidity and circulation of their tokens, new blockchain-based businesses and projects that use tokens rely on the concept of liquidity pools. More so, one of the processes during an IDO (Initial DEX Offering) is the creation of a token pair, which provides liquidity for a new token. Thus, for most liquidity pools and provisions, here is the quick lay down:
Once a new token pair is registered on a decentralized platform, a new market is automatically generated for that token pair on the platform. As a result, platform users can add liquidity to the pool created for this token pair.
After providing liquidity, the liquidity provider is rewarded with the platform’s tokens equal to the amount of liquidity they provided.
This process is called farming and it is basically providing liquidity to a cryptocurrency in a blockchain network. A person who contributes their crypto assets to a platform to participate in the decentralization of trading is a liquidity provider, sometimes known as a market maker. In exchange, they receive fees from trades made on the platform where they provide the liquidity. The fees received can be viewed as a type of passive income. In most liquidity provision programs, provided crypto assets are locked on the platform for the period the user chooses to provide the liquidity.
GYMNET is a new utility token created for the GYM NETWORK. The GYMNET token is already trading on decentralized exchange such as PancakeSwap.
The initial liquidity to the BNB/GYMNET and USDT/GYMNET market was provided by the Gym Network team. Going forward, we have reserved 6% (40M) of the total available GYMNET tokens to reward investors and supporters who add liquidity to BNB/GYMNET or USDT/GYMNET pool. Providing liquidity for the GYMNET market will ensure that you use your crypto assets to maximize revenue and minimize losses.
You can get started by connecting the supported crypto wallet of your choice with GYM NETWORK. Once you have access to the GYM NETWORK dashboard, you will see "Total Staked", which is the amount of GYMNET token added to the liquidity of this market. Then, under "My Stake", you can see how much of this liquidity has been provided by you. You can also see your rewards for providing liquidity under "Unclaimed GYMNET". Adding liquidity can be easily done from the same page on the GYM NETWORK dashboard.
First, decide how much liquidity you want to add, then make a token deposit of the amount. You will be charged a 4% deposit fee which goes to the buyback and burn program of the GYMNET token. Find the button to add liquidity on the top-right corner of the page.
You can only add BNB or USDT and GYMNET to this pool (the pool always takes 50% of each asset). Unlock the token/s and finally click on Add Liquidity & Stake. You will see your liquidity when the blockchain updates and immediately start earning rewards.
There is no minimum withdrawal, and you can claim the GYMNET rewards at any time by clicking on "Claim" or, if you prefer to compound your rewards by adding more liquidity, you can click on "Claim & Stake" to add more GYMNET tokens to the liquidity pool. Note that you will also need BNB for this process.
Finally, you can withdraw your liquidity anytime by clicking on "Manage Stake". Of course, you will stop earning rewards from the pool, but you are free to re-add liquidity at any time.