Enjoy low fees for large transactions with tight spreads
Add tokens to the pool to become a market maker
Earn interest and a share of transaction fees for pooling
1. What is the difference between Binance Liquid Swap and other trading functions?
Binance Liquid Swap is based on a pool of liquidity. There are two tokens in each pool, and the relative amount of tokens determines the price between them and can always be traded as long as there are corresponding tokens in the pool.
Binance Liquid Swap offers more stable prices and lower fees for large transactions.
2. How do I provide liquidity for Binance Liquid Swap? When can I remove it?
Select a pool of liquid trading pairs and deposit an amount (collateral) into the pool. The system will convert the amount into two tokens according to the price ratio of the current trading pair pool and fill the liquidity pool with a certain amount of pool portion. After adding, the pool portion can be removed at any time, and the removed pool portion will be saved.
3. What is the source of income for Binance Liquid Swap? Is it principal secured income?
Added tokens receive a share of fee income from the pool transaction. At the same time, the added tokens will receive BNB yield farming rewards. But when the price of a token fluctuates wildly in the market, the holder of portions in the pool may not experience the same profit in value, therefore adding is not risk-free guarantee and does not generate principal secured gain.
4. How to calculate the pool rewards ?
Yield-farming and trading fee rewards are updated every hour. Users can click [Claim] to claim the earned tokens to the spot wallet at any time. Users’ hourly yield-farming rewards = Pool portion ratio * The total hourly yield-farming rewards in the liquidity pools. Users’ hourly trading fee rewards = Pool portion ratio * The total hourly trading fee rewards in the liquidity pools.
5. How to remove Binance Liquid Swap portions?
After a token is added to the pool to obtain a portion in it, the same token pool portion can be removed. This action can be made in both proportional tokens or in a single token of choice. A transaction fee will be deducted from the amount available when removing a token in order to trade the token to another token in the pool on a proportional basis.
6. What is the portion obtained after adding liquidity, and the related portion proportion, portion composition and portion value?
After the liquid token is added into the pool (i.e. deposited assets), the system will calculate the portion of the token in the pool based on the amount of the mortgage. For example, you hold 2 pool portions of BUSD/USDT tokens. The total pool portion of the token-pair pool is 10, and the token-pair pool consists of 10 BUSD + 11 USDT, with a value of 21 USD. This leaves your current portion proportion at 20%, and your portion composition is 2 BUSD + 2.2 USDT, with a value of 4.2 USD. Please note that each transaction, mortgage and removal by any user will affect the pool portion, pool price, pool composition and pool value. As a result, your portion proportion, portion composition and portion value will change in real time.
7. How is the cost price calculated?
At each time you adding tokens to the pool, the system calculates the cost price of the pool portion based on the pool portion acquired at the time and the value of the pool portion at that time.