RE: Why Liquidity Pool Incentives Matter

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Great, educational post! A lot of great info about pools and how they work or can work... I was just chatting with my friend yesterday about the advantages that these decentralized pools can bring to some coin... The perfect example is LEO, where the ability to trade with it on Uniswap with ETH, creates a lot of possibilities for arbitrage trading, which again, pumps volume on both exchanges (Uni and LeoDex)... and we all know what means the bigger volume in the eyes of potential investors...

But, it's not just that, incentivizing them gives additional profit to liquidity providers as you said... And someone asked me what's the point of diesel pools if there is no fee? Well, again, I think that not only token CREATORS should create these pools to bring attention to the project, but also big stakeholders can do it... If you are a whale, you want that your investment wins, so, why not do something about that...

I know that it sounds weird, especially when we have people that are big stakeholders in Hive (for example) and they don't want to see higher valued HIVE as it will bring other big fish and "take" their "power"...

So, which point of view sounds crazier? Whales fighting to bring additional value, or killing the project to be a big fish in a small pond? :)

Sorry about the long comment :) :)

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Oh no these are my favourite kinds of comments, why I think LP's are the future of the industry is because its taking coins off their native chains and they becoming cross asset value. So instead of Leo sitting on HIVE or Ether stuck on ETH they can all jump between chains to be used in other dapps or services, without the need to exchange to native assets.

LP pools means you don' HAVE to have a token for your dapp you can simply accept ETH now even if you are a tool built on EOS for example, that to me unlocks value, makes it easier to use and will kill a lot of coins in the process but that's all part of the market developing.

In future I hope to be able to be BTC only and if I want to use a product I don't want to be forced to buy EOS I want to use my BTC on EOS, or lets say USDT on any chain that's going to make things so much more interesting, now that assets can move around more freely

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