Massive news reached the Koinos and KoinDX community yesterday. A wrapped Ethereum asset has been deployed on Koinos blockchain. Find out which opportunities this launch offers for you and how you can make the most out of it!
Ethereum is available for trading on KoinDX
Amazing news, Ethereum ($ETH) is now available on KoinDX. We have listed the token to our default token list yesterday and created the liquidity pool for the Koinos/Ethereum token pair ($KOIN/$ETH).
The incredible feature that users still have to realize is that you can now trade $ETH without any gasfees on Koinos blockchain.But that's is not all. Read more to find out about how Ethereum can be available on Koinos blockchain and how you can earn money by providing liquidity at KoinDX.
Wrapped ETH token are now available on Koinos
Chainge Finance has announced yesterday the connection of Koinos to their amazing blockchain ecosystem connected to over 25 blockchains. Users can now bridge their Ethereum to Koinos via the Chainge Finance mobile app.
What are Wrapped Token?
A wrapped token is a special type of cryptocurrency. On the one hand it is a casual token, but on the other hand it is a wrapper around another asset which usually exists on a different blockchain network.
Ethereum is the native token of the Ethereum blockchain and Chainge Finance has now introduced a wrapped version of Ethereum on Koinos.
How does the bridging via Chainge work?
This is how the process of bridging ETH to Koinos works:
- A user sends his Ethereum ($ETH) to Chainge Finance
- If the user wants to withdraw his $ETH to his Koinos wallet, the user does not receive the original Ethereum asset. The Koinos will receive the wrapped Ethereum instead.
- This wrapped Ethereum is backed 1:1 with the original ETH which was sent to Chainge Finance.
- The real ETH is now locked in the bridge contract. It is not gone, lost or burnt.
- If the user wants to receive back the original Ethereum, the user can transfer wrapped ETH token to Chainge Finance and receive original ETH token in exchange.
Watch Koinos Group CEO Andrew Levine explaining Chainge Finance
What opportunities does wrapped Ethereum bring
As Koinos grows as a blockchain and users and projects enter the network, we will see demand for liquidity in our KoinDX liquidity pools. Users with available liquidity actually have a chance to make their money work for them. Earn passive fees by providing assets to our liquidity pools.
Every trade made through our Automated Market Maker (AMM) protocol will not cost any gasfees, but we do incentivize liquidity providers and KoinDX DAO in the form of a trading fee. 0.17% of the 0.25% trading fee is shared with all liquidity providers in relation to their share of the pool.
Learn more about liquidity in our official docs.
How do I provide liquidity at KoinDX
Adding liquidity to our liquidity pools is a simple process. Go to Add Liquidity app.koindx.com/liquidity/add, select the token pair you want to provide liquidity for and enter the amount of token you want to provide.
One thing to keep in mind is that you can only add token in equal proportion to the current price of the pool. For example if 1 ETH is worth 3.000 Koin, token can be added to the pool only in the same proportion.
Finally, click on Add Position to confirm and sign the transaction with your wallet.
Done! You have successfully added liquidity to one of our liquidity pools.