About the $VV tokenomics thus far
"Liquidation Sale everything must go," that's what our new $VV token holders have been doing according to the transactions on the FLOW blockchain.
It's been a wild ride, and we've only been live on the FLOW blockchain mainnet for a month. Flow is a layer one blockchain with its own set of protocols and programming language called cadence. It also has its community and is home to NFT projects like Crypto Kitties and NBA Top Shot. FLOW is one of the first blockchains to be created out of the need to control its digital collectibles. It is semi-centralized. You can upload your contracts for a minimal gas fee. Still, getting listed on popular wallets and decentralized exchanges or even inputting a custom logo on the block explorer called Flowscan is a corporate process. We've had to submit various google forms and email random people to create space for the Violet Verse.
We didn't know what we were doing regarding $VV liquidity pools, but we've gotten the hang of it now that we got our feet wet on our first interactions. It's about learning to test the deep waters and finding new ways to grow your savings.
And rememberâthis is a bear market! Degenerates worldwide are rug-pulling, scamming, and swapping at every opportunity. The US feds just raised their capital rates by a quarter this week!
Liquidity pools are a great way to grow your savings.
There are three things you should know about liquidity for $VV. Before understanding $VV liquidity and how it is maintained, we must first discuss the concept of liquidity pools in the decentralized finance industry. Liquidity pools are the backbone of the decentralized finance industry. It's also an advanced strategy for Defi traders. If you're a pro at trading NFTs, it's time to explore the rabbit hole of blockchain and ERC-20 tokens.
The concept is simple: you put your token into a pool with others, and everyone gets interested. It's like a group savings account, but you can pull out at any time if you need to take money out or need cash for spending purposes.
Liquidity pools are when pairs of tokens come together to create value. Anyone can make the "pairs" if they have the contract address. And the incentives for throwing your "tokens" into pools are great. If you are the first Defi trader to create a pair, you can potentially earn interest on future amounts deposited in the "pair" initially created! Secondly, based on the decentralized exchange, their governance structure can offer users high-interest rates on stable coin-like pairs. It's like a group savings account, but you can pull out at any time if you need to take money out or need cash for spending purposes.
And they're not just suitable for people who want to saveâthey're also great for speculators who want to make money by taking advantage of arbitrage between two tokens. For example, if you think that $VV will go up in value relative to $XYZ, you could buy $XYZ with $VV and hold it until the price difference goes away.
Interacting in this type of environment is where decentralized finance starts getting interestingâyou're gathering information about how markets work and how your money can go from 100 to 30 in seconds! The rollercoaster ride has been quite educational.
Here's what happened so far with $VVâŠ
Key Defi Learnings:
Learn more here.
Stay tuned for more liquidity lipgloss updates!
**Disclaimer: Nothing on the Verse should be taken as financial advice. Please do your own research. $VV utility reflects engagement on the protocol, accessing token-gated content and community events.