Through my crypto journey, I somehow acquired a very large sum of "BIT" token, a second-layer HIVE token that doesn't seem to have much utility, except to "pay bridge fees".
I didn't know what to do with it. Burn it? Forget about it? Try to sell it? None of these sounded good to me. How about DISTRIBUTE it!
Rewards can be contributed to any active liquidity pool and distributed to all providers daily. Anyone can add rewards, not just the account who created the pool. No cost to the user, except of the cost of the token... but no backsies once it's added.
I went into tribaldex.com and clicked on "distribution". I searched for some liquidity pools that I'd like to support with some extra rewards. I select the DVS:DEHEDGE pool.
Let's put in some BIT token: maybe a m... billion token. Easy Peezy!
I happen to be invested in that pool... and look! BIT token is included now! I will be rewarded 30K BIT per day!
I added 1 Billion BIT to ten pools:
DVS:DEHEDGE
WINE:WINEX
SWAP.HIVE:THGAMING
MEME:PEPE
ZING:SWAP.HIVE
WOO:SWAP.HIVE
SWAP.HIVE:PIMP
SWAP.HIVE:DRIP
ALIVE:ALIVEM
LEN:LENM
I just want to do something with the token. And wanted an opportunity to demonstrate how it's done.
Is it a good thing to do?
On one hand, it's probably not great distributing a (mostly) useless token like this, but at least it's moving and spreading, instead of stagnating in my account. People may find value in the token, perhaps build some utility. How many people get LPR or BST in their rewards? Now they get BIT too!
On the other hand, it's a great lesson on an under-known and perhaps underappreciated feature of tribaldex.com. It's an opportunity to share the experience of adding rewards to pools with other Hivians!
There's nothing more to do than to sit back, satisfied that 10,000,000,000 BIT token will be slowly distributed out to hundreds of accounts each day for weeks, months and in some cases years!
What users will do with BIT, I don't know, don't care. It could/should be burned, but I'll leave that decision to each user. Could try to sell it, but there's a lot of competition in that market.
The short answer: to help strengthen the pool and crypto economy. And it's a boss thing to do.
Rewards tend to gain the attention of new liquidity providers and encourage existing provider to provide more - especially if the daily rewards raises the APR.
The advantage of gaining more users adding liquidity is that it helps stabilize the token and reduces the risk for all investors in the pool. By keeping tokens stable, we won't see giant rises and falls in value, encouraging more trade and allows a healthy rise or decline of a token.
Pump-and-dumps are unhealthy for everyone, except the dumpers. A strong liquidity pool makes that much more difficult, since bots help keep the values around something more natural. The better rewards, the more contributors, the more resistant to market manipulations, which encourages more rewards, more contributors and so on and so on.
A healthy HIVE economy is good for everyone here.
If you would like to support any rewarding liquidity pool by providing token rewards, I welcome your participation. It could be a token like BIT, or a more valuable token would be appreciated.
If you want an promote a new token with a give-away, this is a zero cost way to distribute it. Even a tiny amount. I know I've found tokens in my wallet and began learning about it, deciding what I should do with it.
There have been times I invested in a token because a small amount showed up in my wallet one day and learned about the respective project.
I'm sharing 50% of my author rewards with anyone with a thoughtful and/or engaging comment below.
I hope this information is helpful or useful in some way. I don't expect everyone to sacrifice their crypto and start distributing it out, but every BIT helps (pun intended).
Did you know about contributing rewards to liquidity pool providers? Is this something you would consider doing?
I'd be happy to hear what you think, below.
