How to Become a Liquidity Provider with Hashbon Rocket CDEX in Few Simple Steps
A liquidity provider is an individual who funds the liquidity pool of a decentralized platform with crypto assets to facilitate trading on the platform and earn passive income. Such individuals are known as trade facilitators and are paid with transaction fees paid for the trades that they enabled. The liquidity that individuals provide is always deposited into a liquidity pool and is identified by the token pair it represents. For instance, the token pair ETH and USDC contains the liquidity that creates liquidity pool ETH-USDC.
Decentralized exchanges that use automated market maker-based systems help leverage liquidity pools to allow trading of illiquid trading pairs with less slippage. Liquidity providers get paid depending on the percentage of the liquidity pool that they provide. For example, while funding the pool, liquidity providers fund two different assets that permit traders to switch from one asset to another by trading in pairs. The crypto market must have enough tokens to trade tokens on the decentralized exchange.
Hashbon Rocket CDEX
Hashbon was founded in Europe in 2016. Its main aim is to become a fully-fledged crypto payment gateway and a wallet that will accept, transfer, and exchange cryptocurrency transactions globally. Hashbon came into place to help change the centralized finance of crypto payment for individuals and businesses. Moreover, Hashbon has now expanded to Hashbon finance reinvented (FiRe)ecosystem. The FiRe initiative aims to revolutionize decentralized finance. In addition, Hashbon introduced the first cross-chain decentralized exchange (CDEX), which is known as Hashbon Rocket; hence it will definitely solve DEFI protocols problems caused by interoperability.
Other popular DEXes such as Pancakeswap and Uniswap have been unable to solve interoperability in DEFI because they are built on blockchain technology. Hence, they only support intra-blockchain transactions. Pancakeswap runs on BSC while Uniswap runs on the Ethereum network, and both have failed to solve the interoperable problem, which prevents the fast-paced adoption of DLT. Hashbon solves this problem, making it easy for liquidity providers to provide liquidity in their platform.
Using Hashbon Rocket, users can connect Ethereum and SBC to exchange ERC_20 and BEP-20 tokens. There is a proof of stake consensus mechanism that Hashbon rocket CDEX uses, usually run by individuals called Arbiters. These individuals make decisions, but the number of tokens they own determines how strong they are. Anyone that holds a HASH token can make a decision to become an Arbiter at Hashbon. Arbiters help to verify token swaps. Therefore, confirmation of any transaction must depend on how information that arbiters provide is correct. Any wrong information that the arbiter provides leads to penalization by losing a lot of portion of their stake.
Hashbon Rocket creates liquidity pools as the first-ever cross-chain decentralized exchange by enabling users to trade ERC20 tokens for BEP20 without any struggle. Currently, Hashbon only supports Ethereum and Binance smart chain (BSC). But, due to the growth of Hashbon Rocket, users will have a chance to trade tokens native to EVM compatible chains. Making it possible for users to earn passive income by becoming liquidity providers at Hashbon Rocket.
Anybody has the chance to become a liquidity provider on a DEX platform such as Hashbon. Liquidity providers are essential in DEX, making it easy to create passive income online. To become a liquidity provider at a decentralized exchange platform such as Hashbon, an individual should navigate to the Hashbon rocket website and navigate to launch DAPP to connect to a Metamask account. After navigating to launch DAPP, an individual can then navigate to the pool section. At the pool section, users can then create a new pool on that site by filling in the required information and then click on approve. Once a user clicks on the approve button, their liquidity pool comes up and starts to run.