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 redeem 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 share.
After staking, the pool share can be redeemed at
any time, and the redeemed pool share will be saved.
3. What is the source of income for Binance Liquid Swap? Is it principal secured income?
Staked tokens receive a share of fee
income from the pool transaction. At the same time, the
staked tokens will receive flexible savings
interest. (Applicable if there is a corresponding flexible
savings product available).
But when the price of a token fluctuates wildly in the
market, the holder of shares in the pool may not experience
the same profit in value, therefore staking is not
risk-free guarantee and does not generate principal
4. How is the flexible savings interest of the token from a liquid pool calculated?
At 00:00 (UTC+0) each day, the interest-bearing principal is calculated by using “the current token-pool asset - the amount added in yesterday + the amount redeemed yesterday” and also the flexible savings interest rate of the token-pool from the previous day. If a token does not have a corresponding flexible savings product, it does not generate flexible savings income.
5. How to redeem Binance Liquid Swap shares?
After a token pool is added into the pool to obtain pool share, the pool share can be redeemed in the same token pool.
This action can be made in both proportional tokens or in a single token of choice. When removing a single token, there will be a transaction fee which will be deducted from the amount of removable available to you due to the need to trade the coin to another token in the pool on a proportional basis for the token you choose to redeem.
6. What is the share obtained after adding liquidity, and the related share proportion, share composition and share value?
After the liquid token is added into the pool (i.e. deposited assets),
the system will calculate the share of the token in the pool based
on the amount of the mortgage. For example, you hold 2 pool shares
of BUSD/USDT tokens. The total pool share 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 share proportion at 20%, and your
share composition is 2 BUSD + 2.2 USDT, with a value of 4.2 USD.
Please note that each transaction, mortgage and redemption by any user will affect the pool share, pool price, pool
composition and pool value. As a result, your share proportion, share
composition and share value will change in real time.
7. How is the cost price and profit of mortgage calculated?
At each time you adding tokens to the pool, the system calculates the cost price of the pool
share based on the pool share acquired at the time
and the value of the pool share at that time. The revenue is calculated when you redeem your share. Revenue = share value at removable - share cost value.
8. How is the 7-day annualized rate of return calculated?
The system uses the change in the value of shares over the last 7 days to calculate shareholders, that is, liquidity providers’ (mortgage users) annualized rates of return. This rate of return includes the flexible savings return on the pool's assets. This rate of return does not include the fees when a user redeem his/her shares.