Liquidity pools are defined as a group of tokens placed within a smart contract. It works similarly to blockchain in that they can be traded and used in decentralized exchanges. A token’s prize may go up or down depending on the investor’s action, e.g., withdrawing or put on one side.
Liquidity pools offer a few advantages over its p2p exchange counterpart. Investors can earn a sizeable profit on their digital goods and enjoy improved efficiency.
Volatility of Liquidity Pools
Liquidity pools have a risk exposed by the recent events of SushiSwap and UniSwap.
$SUSHI, a Decentralized Finance (DeFi) token swiftly rose up the ranks from $600,000 in market cap to $285 million in just two weeks’ time. Then, SushiSwap creator Chef Nomi put his 10 percent development fund and converted it into 38,000 $ETH, or approximately $12.5 million in value.
After public outcry Chef Nomi returned the 38K ETH. Investor trust in the token fell and it was only able to recover 20 percent of its original price.
How is Jointer Different?
10,700,000,000 JNTR tokens will be pre-minted and distributed among Jointer team, advisors, Jointer providers and early investors.
These pre-minted assets are to be kept away from secondary market transactions and placed via smart contract gateway using an API for engagement.
The gateway will place orders only when face value in reserve and market demand match up. Furthermore, the gateway prevents sell orders from occurring within 90 days after an Auction ends.
50 percent of pre-minted JNTR tokens are locked 10 years to show how committed the team is into the project.
Removing the Sushi Swap and UniSwap Stigma
JNTR minting is based on daily supply in Auctions. Starting mint for Day 1 will be 50K JNTR. The following day the face value of the token will depend on the previous day’s results and contributions.
Price slippage recovery is adjusted beyond simple calculations, which make Jointer better than SushiSwap and UniSwap.
