Currently 3,000% returns with Jointer and their financially engineering multiple tier reserve system built on top of UniSwap, providing unlimited liquidity.
Understanding the Volatility of Liquidity Pools in the Market
Liquidity pools would be best described as pools of tokens locked in a smart contract that use a simple calculation to determine current token prices for the pool. The pools help provide liquidity to investors and to projects. They are widely used and gaining popularity in the cryptocurrency market. When you put tokens into one side, the value on that token decreases and when they are withdrawn, the price increases which gives whales enormous power.
Liquidity pools offer a few benefits over the conservative order book or person-to-person exchanges. The efficient trading of tokens would facilitate and enable investors into earning a profit on their digital assets. However, it these popular liquidity pools have risks. Investors should know the various risks and options before they intend to invest.
The volatility of liquidity pools
With the recent developments with SushiSwap and UniSwap, the former used ‘Vampire Attack’ on the latter. Within a week, it resulted in a loss of more than $1 Billion of liquidity reserves to UniSwap. Consequently, $Sushi is the trending tokens in Decentralized Finance. It increased from $600,000 to a whopping $285 million in merely two weeks.
However, Chef Nomi, the creator of SushiSwap, liquidated 10% of the developer fund. It resulted in him netting 38,000 $ETH amounting to nearly $12.5 million. As a result, $Sushi lost more than 70% value along with creating a public uproar about SushiSwap being an exit scam by the creator Chef Nomi. Despite Chef Nomi returned the 38,000 ETH after a couple of days, it had lost the trust of the investor’s. It recovered the $Sushi price by only 20%.
With the level of risk included, only a single DeFi project, Jointer appears to be addressing the issues directly and the market is taking notice, boosting the token to 30X gains since launch on Sunday, September 29.
Enter Jointer.io’sDeFi solution to the rescue for safeguarding investors
Jointer’s decentralized solution has locked 50% of all pre-minted tokens for 10 years. On top of this, all pre-minted JNTR are restricted from direct engagement with secondary markets. This shows a dedication to long term success of behalf of early investors and the team. When the team cannot dump tokens like Sushi, investors benefit.
When pre-minted JNTR holders want to sell their JNTR, orders have to be placed through a smart contract gateway which restricts their ability to set the price or access any liquidity pools. By restricting pre-minted JNTR from reaching liquidity pools, new investors into JNTR and the community will benefit the most.
Decentralized DAO Voting and Ongoing Mint
Jointer’s smart contracts are wholly decentralized and control through a DAO. The ongoing minting project is based on market demand.
The fundraising amount of the previous day and the JNTR face value at the end of the day would determine the starting mint of the following day. It would be calculated by taking the total from the previous day and dividing it with the face value amount of the JNTR at the end of the day.
JNTR is also minted according to the individual discounts and group discounts that are meant to reward the investors for investing more than the goal of daily auction. To reach the daily auction goal, the investors would be awarded 50% discounts.
How to remove the risk of UniSwap and Sushi Swap by Jointer’s Reserves
By going beyond the simple slippage calculations utilized by the UniSwap and SushiSwap protocols, Jointer provides the best price slippage recovery for the investors. It would go beyond the simple slippage model. Utilizing the Side Reserve for consistently recovering the Main Reserve, JNTR provides the price slippage recovery after redemption for the next investor looking for redeeming JNTR.
Are you looking forward to learning more about Jointer? Go to Jointer.io.