What are Automated Market Makers (AMMs)?
A market maker is an individual or a group that places bids and asks on an exchange. A healthy exchange will have market makers providing depth and liquidity to their order books. In traditional finance, it takes a highly capitalized entity such as a bank or a trading firm to be able to put up the capital to act as a market maker. Uniswap and other DeFi exchanges created the concept of retail Automated Market Making to allow smaller players and retail investors to contribute to the liquidity of the exchange in exchange for rewards, typically paid out in cryptocurrency.
Why Use the PowerPools AMM?
The PowerPools AMM allows retail investors to fulfil the role of a market maker and earn fees for putting up liquidity on the PowerTrade platform. These fees are credited to your account in realtime, and can be directly withdrawn in cryptocurrency at your convenience.
Both the earned fees and the deposited liquidity have no lock-in or staking period, and can be withdrawn at any time if required.
USD Stablecoin Payout
Earned fees are paid out in USD stablecoin (USDC) and not in the form of a proprietary token with questionable liquidity or tokenomics.
Synergy with PowerTrade
PowerPools is tightly integrated with the PowerTrade derivatives exchange platform, allowing you to hedge your risk by placing quick and simple defensive options trades on the same platform. This will be further automated in a future update, making it even simpler for retail investors to protect their investment.
How much does it cost?
So how much does this service cost market makers? The full fee schedule for our services can be found here, but to incentivize liquidity providers, market making orders are subject to lower fees than orders that take liquidity. Market Maker fees on the spot markets are currently 0%, so it costs you practically nothing to create new pools.
How do I get started?
Create or login with your PowerTrade account and start earning fees on PowerPools now: https://go.power.trade/powerpoolsamm
See the tutorial on how to get started: click here
PowerPools is only available on web and currently limited to the first 200 users so get started now!