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What are Liquidity Pools?
Investing Basics
January 16, 2023

What are Liquidity Pools?

In 2022, the BOTS app launched a couple of bots that converted the money you’d deposit into USDT, which could then be used as a part of our liquidity pool. But what exactly are liquidity pools?

What are liquidity pools?

Simply put, a liquidity pool is a way of crowdfunding. In the world of cryptocurrency, these pools collect digital assets in the form of cryptocurrency or tokens and are safely stored on a decentralized exchange. The purpose of liquidity pools is to support trading operations on a particular network. In return for this support, users who contribute to the pool are rewarded in different ways.

Liquidity pools at BOTS.

Let’s take the example of the 6.75% Savings bot. This bot was launched early last year, and it converted the money you deposit into the asset USDT. 

The purpose of this liquidity pool was to provide additional funds to help offer a seamless experience to all BOTS users. There was only a limited need for funds in the BOTS liquidity pool, so you may notice that the bot is currently full.

What did our users get in return?

We offered a steadier return at a lower risk. This particular bot offered a reward rate of 6.75% per year. In a time when it was difficult to gain interest on a regular savings account, we offered BOTS users a unique opportunity to grow their capital.

Curious about how the BOTS app works? Check it out here.

Disclaimer:

This blog is for educational purposes only. The information we offer does not constitute investment advice. Please always do your own research before investing.

Any views expressed in this blog and by BOTS do not constitute a recommendation that any particular cryptocurrency (or cryptocurrency token/asset/index), portfolio of cryptocurrencies, transaction, or investment strategy is suitable for any specific person.

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