Liquidity Pools

LIQUIDITY TO OUR LIQUIDITY POOLS

Users can contribute liquidity to GOLDEX pools by adding their tokens to liquidity pools, or “LPs.” Users will obtain LP tokens when they add their tokens to a liquidity pool. (GOLDEX version of liquidity provider tokens). If you put GST and BNB into a liquidity pool, for example, you’d get GST-BNB tokens.Your percentage of the GST-BNB liquidity pool is represented by the number of tokens you receive.You can also remove your liquidity at any time to redeem your funds. Liquidity provision is not without risk, since you may incur a temporary loss.”To put it another way, the difference between storing tokens in an AMM and storing them in your wallet is impermanent loss.” It’s not all terrible for liquidity providers, though, because you’ll be rewarded with trading fees. When someone trades GOLDEX, they pay a 0.2 percent fee, of which 0.33 percent is added to the swap pair’s liquidity pool. Note that any project can add tokens via Crypto Pool, but only projects that win a vote will be shown as a default option on the swap interface (in order to discourage scams). GoldStar Finance has solved the problem of Impermanent loss, by carefully studying the Liquidity Providers, and adopting the best AMM (market makers) methodologies in justifying its trades, to make the right decisions.