“Every improvement contributing to your outstanding experience is our daily motivation." - Remitano
At Remitano, every feature and product we offer users is designed to bring financial happiness to everyone - after all, our motto is "Make people financially happy." Remitano Liquidity is no exception!
Beginning November 6, 2021, Remitano will officially offer users, especially HOLDERs, a powerful tool to help earn a more stable and long-term income.
What is Remitano Liquidity?
Why should you choose Remitano Liquidity?
Things you should know before using Remitano Liquidity product
Experience Remitano Liquidity products and increase passive income now!
To understand the Remitano liquidity product, first, you need to understand what Liquidity is. Liquidity refers to the ease with which an asset is bought or sold in the market without affecting its market price.
A crypto asset with high liquidity is understood as users can buy and sell in large quantities quickly without fear of excessive slippage compared to the market price at that time. Slippage means that the price moves in a more unfavorable direction for the buyer/seller than the market price because only a small number of traders can satisfy the trading demand in large quantities.
Remitano Liquidity is a product created with the goal of providing the best prices for trading pairs on the exchange, reducing slippage when users buy/sell coins in large quantities; at the same time, making it possible for you to earn more passive income by providing liquidity to the pool from your "idle" coin-coin or coin-fiat pair (VND/NGN/MYR/INR/…) on the exchange.
You will receive a share of the income generated by Remitano from Swap fees incurred due to the need to exchange coin/fiat pairs you have added to the pool.
Remitano Liquidity interest rates are usually higher than bank interest rates.
Help investors, especially holders, earn more income from their own coins if they do not intend to invest those amounts of coins in a short time.
Add/Remove liquidity in the pool easily, quickly, flexibly, and completely for free (This is a plus point of the Remitano Liquidity product compared to other Liquidity products when it will cost you a rather expensive fee that can be up to hundreds of dollars if you want to remove liquidity).
Withdraw interest/capital at any time. You can easily withdraw interest and open more liquidity pool from that interest to enjoy more interest, and withdraw capital immediately when needed if you do not want to continue to keep coins in the pool, and still receive profits from opening to removing.
Those who provide liquidity to the pool will receive a share of the income of the fee earned by Remitano on Swap transactions arising from the pool.
The percentage of annual profit you actually receive may differ from the number shown on the interface in the "All Pools" section because it will depend on the price range scale you set when adding liquidity to the pool.
The lower the price range, the higher the APR, and vice versa. However, it could be risky if the coin price slips out of your Support Zone of the asset pair you are adding to the pool, then you will no longer receive profits from that pool. That is, the market price must be between the Minimum Price and the Maximum Price (Min Price <= Support Zone >= Max Price) so that you are eligible to receive profits.
If the coin price in the market slips from the Support Zone, you have 2 choices: (1) remove the liquidity for that asset pair, adjust the Price Range Scale and add liquidity back; (2) wait until the market price of the asset pair in that Pool returns to the Support Zone to continue receiving profits from the pool.
Impermanent loss is a risk that liquidity providers face. This is the decrease in cryptocurrency value between the time you add liquidity to the pool and when you withdraw coins from the pool. When there is a significant price change in the market, the ratio of the pair of coins to which you provide liquidity changes.
This means that when you click "Remove Liquidity", you may no longer receive the correct amount of 2 types of assets as you initially added to the pool, maybe this amount of an asset will increase, and the amount of another asset will decrease because the price ratio of these two assets has changed.
As an example, consider the following:
Let's say you initially provide liquidity for the ETH/USDT pair, and your total cryptocurrency value is $10,000.
1 ETH worth $5000 and 5000 USDT included.
By the time you want to stop Liquidity, the price of 1 ETH would have increased to $6000 (a 20% change from the beginning), and the USDT value will remain the same because this is a stable coin.
You can use online Impermanent loss calculators like on Coinmarketcap to see how much you will incur when withdrawing coins from the pool when ETH is at $6000. The price is 0.41%.
This is referred to as a Impermanent loss because it occurs only when the exchange rate between the two assets you add to the pool changes compared to the time you stake it. So, if that rate does not change or changes but returns to the initial rate by the time you stop holding coins in the pool, you will not have to bear this loss. However, the greater the exchange rate volatility, the greater your Impermanent loss.
In fact, Impermanent losses can often be offset by the trading fees you share from the pool while still making a profit. However, you should be aware that providing liquidity to the pool is not a risk-free investment with a guaranteed return on capital.
Note: In addition to entering the total number of coins/fiat you want to add to the pool, you also have to "Set Liquidity Price" for your pool.
After you've finished adding liquidity, you can check your profit by going to "My Positions" -> Select Coin-coin or coin-fiat Pair you added to pool -> "View Details."
Note: If the "Unclaimed fees" is $1 or more, you can click the "Claim Fees" button to withdraw the interest to your Remitano wallet, and continue to invest/open new liquidity to continue earning more interest on the interest received.
You can also stop holding coins in the pool by clicking the "Remove Liquidity" button in this section.
Need help or have questions? You can also contact our 24/7 customer support team through the chat box at the screen's bottom right corner.
