✔️Liquidity pools role

Liquidity pools play an essential role in the SMAT ecosystem since it is the mechanism by which users pool their SMAT tokens in yield optimizers and decentralized exchanges in order to get rewards for providing liquidity for the project. These rewards work as incentives while eliminating third-party middlemen. The more assets in a pool and the more liquidity the pool has, the easier trading becomes on decentralized exchanges.

Crypto pools are of utmost importance. The potential downsides of entering a market with little liquidity are immense. The volatility that will occur when a large order is executed but there isn’t enough volume at the selected price to maintain the spread, will result in a trading price that far exceeds the original market price. SMAT aims to resolve the problem of illiquid markets by incentivizing its users to provide liquidity for the project at an average APY of around 15%.

At an early stage, SMAT will be paying a higher yield that will come from its reserve and this is included into the commercial and marketing expenses for launch.

We expect to leverage protocols such as Beefy Finance to create liquidity pools and showcase this project.