📱Why Single Token Pools?📱
In our previous article, we spoke about Impermanent Loss — what it is and how it can be avoided.
What’s wise to remember, however, is: impermanent loss can only occur in pools where 2 different crypto assets must be deposited. We at BXH offer single token pools only. What are these & how do they work? Let’s check it out!
🌐Single Token Pools
Single Token Liquidity pools work by grouping the deposited token into a virtual pair with our virtual USD stablecoin (vUSD). Instead of having to deposit multiple pool pairs, you only have to deposit one — “Token A”, and each token is paired with the vUSD stablecoin. There is no pool weighting, only an amount of Token A reserve in the pool based upon how much liquidity has been provided to the pool.
Benefits of Single Token Pools
➕You only need to supply one token to be an LP
➕Projects can launch their token with zero capital
➕More capital efficiency & increased decentralization
➕Lower trading fees
➕More capital is unlocked and free to use
➕You can borrow and lend from same pool
➕The borrowing and lending process is more optimized as you do not have to withdraw/reserve two tokens to keep the ratio the same
🌐BXH Single Token Pools
We do not believe there is a point in subjecting our users to additional risk of impermanent loss, which two-pair token pools suggest. Additionally, we do not believe in lock-ups! Funds and profits are yours to redeem whenever you feel like, as it should be. Let alone the fact that single token pools advocate increased decentralization!
Ready to get staking? Join Us! app.bxh.com/
Stay Tuned for BXH News & Updates!🚀
