Secure Passive Income with Chainge Finance: Futures Liquidity Pools

By joining a crypto liquidity pool, you can get a much higher APY compared to what the banks offer. On average, US savings accounts provide a 0.06% return, and with rising inflation around the world, the figure is far from ideal. If you are looking to make your money work for you, you can now easily become a liquidity provider and receive a much more advantageous rate. 

What Are Liquidity Pools 

In decentralized finance (DeFi), a liquidity pool is a mechanism that provides digital assets with liquidity for the purposes of automated purchase and sale. The more liquidity there is, the easier it is to trade. In a nutshell, a liquidity pool is an automated market maker.

Those who participate in pools are called liquidity providers. They get rewarded for their involvement with higher APYs or a certain amount of tokens that depend on the chosen assets and DEX conditions. 

Impermanent Loss

The price of cryptocurrency remains a subject of fluctuation that can create impermanent loss in the pair you chose to provide liquidity in. Let’s use an example with two tokens A and B. If two swaps happen simultaneously, e.g., 100 A tokens get swapped to 100 B tokens by one user, and another does the opposite, the prices do not change, meaning that the funds in the two liquidity pools stay on the same level. However, more swaps of A for B create scarcity for the latter – B tokens are removed from the pools, while A tokens top them up. As a result, the value of A can drop significantly. In this situation, the liquidity provider suffers from an impermanent loss, meaning the loss of a certain amount of token B. However, the loss does not occur with Time Framing from Chainge Finance, making APYs of over 100% possible without having to worry about impermanent loss. 

How Time Framing Works

In a nutshell, Time Framing (TF) is a way to lend your digital assets by turning them into futures. By time framing your assets, you can receive a much higher interest, which is instantly deposited to your account. TF funds do not leave your wallet, all you need to do is wait for them to mature. Suppose you time-framed 1000 USDT on 01.01.2021 with a maturity date of 01.01.2022 at 20% APY. In return for your USDT tokens, you instantly get 1020 TF-USDT that automatically turn into spot on 01.01.2022 (some coins are also eligible for CHNG rewards along with APY). APYs are dependent on several factors such as the price of the Chainge native token, $CHNG and futures market arbitrage opportunities. 

Here are a couple of APYs Chainge now offers: 

USDT/TF-USDT – Pool size: 22.6 million – APY：98.1% 
BTC/TF-BTC – Pool size: 19.8million – APY：98.1%

Rewards Without Time Framing

If you are looking for the regular spot pairs but bearing in mind the possibility of impermanent loss, check out the APY Chainge can offer for their native token CHNG paired up with USDT: 

CHNG/USDT – Pool size: 4.43million – APY：327%

Please be aware that APYs are subject to change and are updated daily, as the crypto market is highly volatile. APYs depend on the $CHNG price as well as the amount of funds in liquidity pools. You can see all of the current APYs here.

Security and Speed

Security and speed are the cornerstones of Chainge Finance. To ensure the transactions are safe and instant, Chainge uses the Fusion DCRM tech (Distributed Control Rights Management). This tech allows cross-chain operations to happen in an instant, which helps users avoid the unnecessary burden of choosing the suitable chain to transfer their funds. Furthermore, DCRM provides bank-grade security for all operations happening within the Chainge ecosystem. You can dive deep into the DCRM tech by checking the Fusion Foundation gitbook. 

Wrapping Up

Time framing allows Chainge Finance users to get a significantly higher APY compared to what the current crypto market offers. And at the same time Chainge enables users to manage their digital assets easily and effectively without constant hassle and unnecessary burdens. If you want to see a step by step tutorial on how to add liquidity in the Chainge Futures DEX pools, check out this walkthrough here.  If you’re ready to get one of the highest APYs available on the market today, start by downloading the Chainge Finance app for Android or iOS.