Liquidity Pools

A Liquidity Pool (LP) is a shared reserve of two cryptocoins, collectively provided by participants, to facilitate decentralized trading and ensure liquidity on a blockchain platform.

Below you can see our current Liquidity Pools:

1. XLM/REAL8 Pool:
   A public pool where anyone can trade REAL8 for XLM or XLM for REAL8.
   https://stellar.expert/explorer/public/liquidity-pool/ff5c2c76062d1e750f89999dfceb8e2202c30a7e6672d2734262176e7e695f16
   
   
2. REAL8/wREAL8 Pool:
   A private pool for select users (more on that below), swapping REAL8 and wREAL8.
   https://stellar.expert/explorer/public/liquidity-pool/58bd2e6d0d74548c6f8d69fe4cd1810ed734f8be89810a284ca149b7137d8a2c

There are several ways to participate in the LPs. Below we describe one of the simplest, providing liquidity via StellarX, by adding your own REAL8 and XLM (or REAL8 and wREAL8) to the pool to help it grow. In return, you get a share of the trading fees.

How To:

• Create an account or login to StellarX:
  https://www.stellarx.com/amm/liquidity/native/choose-asset
• If you don’t have REAL8 yet, you will need to purchase some yet on the ‘Markets’ section:
  https://www.stellarx.com/markets/REAL8:GBVYYQ7XXRZW6ZCNNCL2X2THNPQ6IM4O47HAA25JTAG7Z3CXJCQ3W4CD/native
• Once you have your REAL8 go to the  ‘AMM -> Add Liquidity‘ section, click on the ‘Add Liquidity’ button and look for the XLM/REAL8 pool. 
  
  
  
  
  
• Put in equal value of both coins (e.g., 40 XLM + 10,000 REAL8). The pool gives you “pool shares” as your receipt.
• For the REAL8/wREAL8 Pool, you’ll need wREAL8 and our approval first—contact us to join this special club.

Pros of Joining a Liquidity Pool

Here’s why you might want to join:

• Earn Rewards: As a liquidity provider, you get 0.3% of every trade in the pool. If 100 XLM gets swapped daily, you could earn a small slice—think of it as pocket change that adds up!
• Easy Trading: Swapping coins in a pool is fast and simple—no waiting for someone to take your offer like in a traditional market.
• Fewer Huge Price Swings: Pools smooth out price changes compared to wild ups and downs in regular trading. With our XLM/REAL8 pool starting at 1,000 XLM, a big trade won’t tank or spike the price as much—it’s like a shock absorber for REAL8’s value!
• Grow REAL8: By joining, you help make REAL8 more available and useful for everyone in the Stellar world.

Cons of Joining a Liquidity Pool

Here are some trade-offs of Liquidity Pools:

• Price Risk (Impermanent Loss): If REAL8’s price rises a lot, you might end up with less value than if you’d just held your coins. You won’t lose anything, but you may not profit as much as holding tight.
• Arbitrage Nibbles: Smart traders might swap coins to profit from small price differences. You won’t lose everything, but they could take a bite out of your pool share.
• Locked Coins: Your REAL8 and XLM are tied up in the pool until you pull them out. It’s not gone, and you can withdraw from the Pool at any time you wish.
• Low Volume Risk: If not many people trade, your fees might be small.