As a crypto trader, you need to set an order for the coin you want to buy or sell.  When the price approaches your set order, the order will be triggered. What if the price has refused to hit your buy order? Maybe you set an unrealistic 'sell order' or you’ve bid for a coin at ridiculously low price. They may not get filled, thereby wasting a lot of time. This is because your sell/buy order is wider than current market range . This is the problem that automated market makers (AMM) is solving and the aim is to boost market liquidity.

AMM is one of the decentralized exchange tools that facilitates trades efficiently. AMM is designed to bridge the gap between liquidity providers and traders so that anyone can buy or sell tokens automatically without necessarily using an order book .  This can attract small charges from each trade and the fee are gathered inside the exchange Liquidity pool. 

A liquidity pool is a part of the decentralized finance ecosystem that uses smart contracts to store digital assets. A liquidity pool helps to facilitate trading and reduce the danger of washout. 

Liquidity is an essential element in the crypto financial market. It is the process in which assets are converted to cash quickly to avoid price swings. If the price can't easily be converted, you may face price slippage (that is when your asset is sold at the price you don't intend to sell it). 

Crypto liquidity pools are the collection of crypto funds locked in a smart contract. They are used to facilitate decentralized trading (buy and sell), and lending, and can serve as a passive investment for the liquidity providers (LP).  The liquidity provider will add equal value to tokens in a pool to create a market. They earn a reward that comes in the form of a trading fee that is distributed based on their share of the total LIQUIDITY.

 pools are found on decentralized exchanges like UniSwap, Curve, Sushiswap, Bancor, and Balancer. They are in the form of ERC-20 token.

LIquidity pool can also be seen in the form of BEP-20 on the Binance smart chain. They are on PancakeSwap, BurgerSwap, and BakerySwap.

The DEX  rewards its participants for keeping their digital assets in the pool. It is usually in the form of staking. The reward will be in the form of a crypto reward or a fraction of trading fees from the crypto exchange pool you stake your assets in.

If you want to put your assets in the crypto Liquidity pool, here's how it to go about it.

Maybe you want to invest like $50,000 in the ETH/USDT ERC-20 Liquidity pool. Let's say you want to use UniSwap. Here is the guide;

Is the Liquidity pool the same as staking?

No, staking is when a coin/token is used as collateral in order to secure a blockchain, a typical example is when validators stake EOS on a dPOS (Delegated Proof of Stake) blockchain. These assets represent some form of trust on the network, thereby preventing the possibility of a 51% attack. Typically, the owners of the staked crypto assets receive rewards when new blocks are mined.

How Is Staking Different from Liquidity Mining?

Usually, staking requires a coin or token, but a liquidity pool requires that two assets are paired together to create a pool, an example is CAKE/BNB. The biggest issue with providing liquidity on decentralized exchanges is impermanent loss. Liquidity providers are faced with the risk of losing the value of their assets in a case of massive sell-off. 

Here is an interesting thing about providing liquidity, LP tokens are generated by the smart contract that represents an individual in the liquidity pool. This token may be transferred or used to farm other tokens. You are earning a trading fee as a liquidity provider while mining more tokens with your LP token. 

An example is when CAKE/BNB is paired to create liquidity on Pancakeswap, and the LP token that is obtained as a result of this is used to farm BUSD. This is also called yield farming because LP token is used to farm more tokens. Looks like someone is eating her cake while it is still in her hands.

Before you provide liquidity, do your own research.

Cryptocurrency and decentralized financing are still at an infant stage, they lack government regulation. Even though you have the opportunity to accumulate wealth through it, the risk of losing it all to scams, Ponzi and hacks are still high. If you are going to stake your crypto or use it to provide liquidity on decentralized exchanges, ensure that you know what you are doing. Avoid staking or yield farming on a new protocol, stick to secured AMM at all times. 

Platforms like Pancakeswap on Binance smart chain, Quickswap on Polygon network, and Uniswap on Ethereum blockchain are recommended platforms for liquidity pool mining, yield farming, and staking. If you are going to test a new platform, it is recommended that you do so with a fraction of your capital. If you follow this advice, you will be able to manage your risk effectively.

Nice Angel

Let's Zoom In On Staking, Liquidity Pool and Yield Farming

When building a business, one of the structures of putting the business on its feet is to raise funds. This happens when you need quick capital to scale your business rather than depending on the little that you have. 

At a point in time, many investors may be pulling in to have a stake in the business. This kind of investor differs. Some contribute their shares just to make a quick profit. They will invest and when they notice that the business value increases, they will pull out their shares. Another category of investors is the one that is after the prestige of the business and the profit they will acquire from the business but they will like it to still be there. They make a big influence on the business because of their capital.

The crypto space is not an exception. The crypto space has more options in finding investors for their businesses. And we call it fundraising. If a project is about to be launched on the blockchain, it will need funds to acquire enough capital. They result in raising funds.

The first crypto fundraising was discovered in the year 2013 and it became widespread in the year 2017. It attracted many participants. Many start-up projects went live with ICOs. Although some of these projects faced some challenges, some still have breakthroughs. And to everyone's surprise, those people that invested in the project that had a breakthrough in their ICO ended up in a 'high-spirited’ mood. The project flourished and the investor's cashout was big. The success of ICO leads to the birth of other crypto fundraising categories. They are the likes of IEO, IDO, STO, and ISPO. However,  I want you to have fundamental knowledge about crypto fundraising before I dive deeper into the Initial stake pool offering.   

UNDERSTANDING ICO (INITIAL COIN OFFERING)

This is the original method of raising funds in the crypto space. Any project that wants to raise funds through this method will have to prepare beforehand. This preparation will serve as the tool that will attract investors to participate in the ICO program. 

The availability of brochures, and marketing material which contains the project sales pitch i.e whitepaper or yellow paper help a lot.  They offer critical details about the roadmap, how much fund is required, the token distribution ideas, and the percentage of the token that will be publicly available. The investors will have a full understanding of the project protocol and will be part of the early investors.

As an investor in the project ICO, you will receive the project token and you will cash out big when the project develops and reaches many people. Ethereum was launched through ICO in august 2014 with a price of $0.31 per token. Imagine its price now. 

IEO (INITIAL EXCHANGE OFFERING) EXPLAINED

IEO is similar to ICO in that the investor can only invest after the project is launched/listed on the blockchain via a selected authority exchange. The process of raising funds is conducted on the exchange platform. An example of the centralized exchange platform that serves as the mediator between project owner and investor is Binance etcetera

Initial Decentralised Exchange offering is the method of raising funds after the project is listed on the decentralized liquidity exchange. It requires a smart contract to transfer funds thereby eliminating the role of the third party. It works on Automated Market Maker like Pancakeswap, Uniswap e.t.c. No identification procedure is required except your digital wallet address to receive the coin. As an IDOs investor, you do not necessarily own equity in the project but you influence some aspect of the project through the token you own. You can trade with the token immediately because the coin is already listed on the exchange. 

LET US ZOOM IN ON STO (SECURITY TOKEN OFFERING)

The project will be listed on the exchange that lists security tokens.  The investor will comply with the security regulation of the exchange that lists the coin. It requires AML and KYC. This is when investors buy security tokens. STO is a tokenized method of raising funds in the initial public funding.

Initial stake pool offering is a new method of raising funds in the crypto space. ISPO is mostly carried out on the Cardano blockchain. Although ISPO is still an infant, it appears as a promising method of raising funds and it is proving to be reliable. Your capital is safe and gives you the freedom to remove your capital whenever you feel like it. 

The users can delegate their tokens to the stake pool and earn a reward. For example, when you stake your capital on a blockchain, your staking reward will be delegated to the staking pool of a project on the blockchain and you will earn rewards and get the project reward in return at the end of each epoch. The reward can be in form of a blockchain token or the project token or both.

Let's say that you stake TRX on the Tron blockchain. When a project i.e BULL on the Tron network needs to raise funds, your staking reward from the blockchain which is a TRX coin can be delegated to the project. The project will return the amount of your delegated token in the form of their token(BULL) or the blockchain token and you will still earn a reward. Your reward can be 100% TRX or 50% TRX and 50% BULL.

ICO requires the investors to deposit their entire capital into a project and cash out big or get the risk of losing all their capital. 

ISPO requires the investors to deposit their capital into a staking pool and their staking reward will be delegated to the project and the project will return the proportional amount of the token to the investors. This relieves the users of any uncertain risk and makes things easier.

In ICO, you are putting your entire capital into the project and you can't use it elsewhere.

Whereas in ISPO, you are putting your capital in a staking pool and earning a reward from it. If the project doesn't yield well, you will only lose your reward but if the project yields well you can claim your capital together with a rewarded token that comes from it. 

You can deposit or withdraw your capital at any time and can participate in many fundraising events. In contrast, ICO does not allow this. 

EXAMPLES OF BLOCKCHAIN THAT SUPPORT THE INITIAL STAKE POOL OF OFFERING.

Cardano is the first inventor of ISPO and it houses MELD and AADA, SundaySWAP, Minswap, and others. Because of the reliability of the ISPO, other blockchains also dived into this fundraising method. We have the likes of Solana, Tron, Terra, and Polkadot.

Investors of Solana staking pool received  Saber and sunny Aggregator token. Tron holders will receive  TRX tokens, Terra holders will receive mirror and anchor protocol tokens, Polkadot will receive Polkadot and Kusama coin

By now you understand what ISPO means and you want to participate in the ISPO. 

1.	Stake your ADA in a Cardano staking pool

2,	Your reward from the staking will be delegated to the new project

3. 	You will receive your reward in the form of the new project token

4.	The project will claim your ADA reward and you will earn your reward with their token. And you will also be receiving rewards from the ADA you’ve delegated. 

5.	To participate, you must first own a Cardano native token.

Let us assume that you are going to do this in Cardano ecosystem.

Delegate ADA reward to one of MELDs Cardano nodes it can either be  MELD (100% MELD) or

You will be earning  MELD tokens(reward) until you release your token.

The tokens will be airdropped to your investors’ wallets at the end of each epoch. 

To participate in ISPO, don’t stay far from the popular chain that is using the ISPO method to raise funds. You can also check on other chains, if you find any you can participate.

While ISPO  is a promising way of raising funds, remember that it is still a new method. When the ICO method was brought, it was also this promising at first. I want you to be vigilant in matters that involve your finances.

How to Make Money Through Initial Staking Pool Offering

Have you imagined this kind of lifestyle? You wake home very early in the morning. Say your prayers, do exercise, and set your goals for the day. Eat good food and resume to your PC to accomplish the goal you've set. You don't need to chase buses or struggle in traffic or get anxious about your boss's nagging. You make a big difference to the world. You suggest a solution to an underlying problem. You vote for the decision to uplift your project to the next level. You control several millions of dollars at the corner of the room. That is the life of a web3 worker. 

The evolution of web3 has brought a lot of advancement in the crypto-verse.  The arrival of DAO has emerged as an important intervention in shaping blockchain into a more transparent ecosystem. DAO brings the principles of true decentralization alongside offering an autonomous structure. 

DAOs are creating more attention recently and many projects and businesses are adopting DAO. The interest in how to start a DAO has been gaining more attention.

DAOs are a revolutionary tool for facilitating governance within the new breed of decentralized applications

Before we proceed, you need to understand the meaning of DAO.

I want you to understand that DAO basically means blockchain-based voting. The full meaning of DAO is Decentralized Autonomous Organization. It is a community with many like-minded people working hard to bring a project into good shape. All the members' suggestions are required. DAO needs the contribution of all its members to build a successful project. This is another true definition of a decentralized blockchain.

Well to put it simply,  DAOs are groups of like-minded people that collectively decide on a blockchain project and how the road map should be. The members hold shares in the project and they are required to vote for the best decision that will trump the product on the blockchain. For example, the UniSwap exchange is a DAO platform and all its members have a Uni token and they all have to contribute positively to the development of the exchange.

Before creating a DAO, you need to under the main reason you need to make it. A DAO can be driven by any purpose. A healthcare DAO community is driven by the aim to provide continuous and comprehensive care to the patient. 

is an entertainment DAO and the purpose is to allow the token to contribute to the creative decision.

is a social DAOs and the objective is to create digital democracy for the people. People can voice their opinion and common interest.

Has the objective of providing liquidity to the community 

 and others have their own unique purposes before they were launched. A DAO can’t be created without any purpose. The objective of a DAO matters a lot to the community.

In a centralized community,  partnership with people in business required a level of trust. Especially when it involved big funds. Although it is difficult to trust completely, people still stand on a  thin edge and interact with caution. In the case of DAO, you don't need to trust any members of the community. You just need to trust the DAO code. It is open source and transparent. You will need a DAO for transparency and good coordination and collaboration. 

As a DAO community, it doesn't have any hierarchical structure. All innovative ideas are being voted upon and the less important ones are eradicated through voting. You can experience any internal strive because everything is solved through a voting system. 

In decentralized autonomous organizations, decisions are made through the collective contribution of their members. You can participate once you have taken part in the organization.  They operate using open source smart contract code to automatically execute tasks. This code established rules. Part of the rule is to let all members of the DAOs have voting rights. And these rights can influence the operation of the organizations including governance and growth. The decision is made once the majority agrees to the proposal. DAOs are transparent and have rules guiding them.

The smart contract, the community vision, and the members make up a DAO. Once the smart contract criteria and the community vision is met, DAO will be available to accept membership. This is the technique to pull in funds. You can be part of the DAO by purchasing DAO native token. You can also contribute by contributing your skills and it will make you become one of the shareholders. This depends on how valued the skill is. Your token share in DAO gives you a seat in the organization's governance. For any decision made in the organization, your vote counts. You can support it or go against it. Just make sure your steps are within the rules of the DAO. Your token share grows together with the DAO reputation. The volume of your token also determines your influence on the DAO governance. 

What I am saying in essence is that DAO accepts its membership based on three key models.

This requires you to hold DAO’s token for you to take part in the community operation. It requires no tough permission, just purchase their native token then you are a dignified member of the DAO.

this requires a little stress. You need to submit your proposal or token or token tribute before you can become their member. This is usually applied to the smaller DAOs that want to become a member. 

with this model, you can only earn your membership through your contribution to the DAO. Before you can contribute to the DAO, you have to submit a proposal to join. When you are accepted you will be paid for any skill you can offer to the community. You will be given a token in exchange for your contribution to the community and holding the token in the community makes you part of the DAO members.

Before building A DAO, you need to draft out the reason that makes you want to build one. You can't just build a DAO without having any idea. You won't even be able to create one. You need to know the structure you want for the DAO. As good as DAO is, not every community can adopt it. You need to analyze if your purpose can go with it.

Before creating a DAO, you must know the type of DAO you want to make. And it must be in line with your draft objective.

The next step is to follow the strategic decision in allocating DAO tokens and must be in long-term vision. You must understand the use of tokens in the DAO to raise funds, and to govern the platform. DAO tokens serve as the instruction to enable members to participate in the growth of the DAO. 

You need to understand and take care of the token supply rather than offering a random value of the initial coin supply.

After putting all the above into consideration, you can now create a DAO and establish the DAO community including the voting portal.

You can create your DAO from scratch or choose to create an already established DAO template. on the Ethereum blockchain. A popular Ethereum-based DAO building template is Aragon. It has many toolkits you can use to create your desired DAO. Some of the tools are

used for creating Ethereum-compatible legal documents. 

it can be used to create DAO in less than 2 min

 has various modules for launching DAO. 

Although DAOs are still in the infant state, a lot of blockchain projects are planning to build their product in the DAO space. It is a transparent organization that allows people to decide and the judgments are public. No internal conflict, no bullies. In as much as you have a token stake in DAO, you are influencing the organization. The top popular DAO coins that we have are UNI, Ape, AAVE, MKR, CRV, DASH Etcetera.

Use This Guide to Create Your DAO

The world is advancing and our financial orientation has surged to the pick, we are no longer in the ignorant age where traditional finance is the only entity ruling our wealth.

The traditional financial system has been existing for a long time but there is still some setback. The challenges that come from traditional finance are lack of control over the financial system, inadequate knowledge about the financial system, centralization, political issue, delay in transactions, high charges etcetera.

The advent of blockchain has eradicated a lot of financial problems, paving ways for you to store your asset safely, securely, and privately. It gives you the privilege to claim ownership of your finance giving you freedom. You can make payments and pay funds without the intervention of the middleman. Blockchain allows people to create a wallet on a blockchain-based wallet eliminating the need to pay the expensive charge when using a traditional finance system.

Blockchain is a decentralized ecosystem with an expensive work of art. It allows users to access the platform anonymously. You can trade, buy or sell without letting the public know your identity. The platform is secured and the exchange is verified. There is tight security against theft. Several sectors like health, politic, finance, education etcetera are using it and they got good results. Health record remains confidential and political corruption are eradicated. This is the work of a decentralized ecosystem. The magic work of the blockchain. Transactions are done in a short time without waiting for eons and the transaction fees are affordable.

Blockchain; a solution to financial oppression

Anyone can operate on the Cryptocurrency blockchain without being monitored by third parties. No government intervention and bank freezing. This makes it better protection against oppressive government protocol where masses are deprived of the fair benefit of traditional finance due to government and centralized banking intervention. Traditional finance can deprive account owners of access to their life savings when they sense some threats either from the constituted authority or other means. Saving your wealth on the blockchain can save you from oppression.

Blockchain has been existing since 2008 and the first crypto asset to adopt blockchain is bitcoin. Blockchain is stocked with a lot of interesting means to gain financial freedom.

The traditional financial systems are opaque and their security depended on middlemen and databases. The system can be easily hacked without system awareness. No one will know what's going on until the do is done. Blockchain privacy is difficult to alter. Every blockchain users have both a private key and a public key. Blockchain will use both these keys to maintain the safety of access to a network and the privacy of all transactions. In blockchain finance, financial institutions can carry out user verification without access to the data, lessening the chances of breaches. Blockchain provides a secure and transparent environment for people's finance. Making them free from hackers.

Traditional finance pays huge prices in maintaining and securing their central database. This is why users need to pay high prices including commission, charges just to do a successful transaction. Blockchain required less charge for a transaction. Some traditional finance institutes are now implementing blockchain smart contracts to participate in low-cost commissions. Blockchain can increase transparency and ensure security. Blockchain helps to reduce the risk associated with financial transactions.

You can transact without any intermediary. P2P transaction. Can verify and settle all transactions without wasting time and can eliminate fund management risk. This is all super work of blockchain smart contract to ensure financial freedom.

IBM reported that 91% of banks had invested in blockchain solutions by 2018 and further suggested growing adoption rates of blockchain to high usage in the financial sector in years to come. Blockchain is gradually spreading it limbs to every aspect of lives. You can easily carry out financial services with blockchain. You can make payments easily, and perform self-executing contracts. All activities are secured and financial freedom is ensured.

Blockchain And Financial Freedom

The concept of cryptocurrency had been existing for decades. But the earlier presence of crypto didn't have much public attention until 2008 when Mr. Satoshi introduced bitcoin.

Cryptocurrency has been existing before bitcoin. The first cryptocurrency was eCash which has been in existence since 1990.

Several attempts to modify it bring about bitcoin and it has been advancing until it gets to where it is today. Now in the crypto space, we have several crypto coins and Tokens.

Cryptocurrency is another concept of currency that provides a good opportunity to invest and trade. It is also known as a digital currency and was created on a decentralized blockchain. 

Cryptocurrency has blended into our economic structure and has reformed our way of life. 

We have two types of digital currency. They are crypto coins and tokens.

Coins are any type of cryptocurrency or crypto assets that are independent of any other blockchain.

They are created on their blockchain and are used as a means of exchange and a store of value. A coin act as a native currency within a special financial system.

They are transparent and decentralized. They can be used to request services and purchase things from many big corporations. Examples of a coin are bitcoin, Neo, Litecoin, Ethereum, Dogecoin, etcetera.

A coin can be exchanged for another coin or altcoin from another blockchain either through crypto exchange or p2p transfer. 

Crypto coins are used by many startup projects to raise funds for building their blockchain. This is often done through ICO crowd sales. 

Coins are mined either through Proof of Work or Proof of Stake. Proof of work can be used to mine coins and it requires a high amount of power (computer power) to solve my mathematical problems. This procedure can create coins and reward miners. Proof of Stake can create and validate transactions based on coin holding.

Tokens are created and operated on an existing blockchain. It is operated on another crypto coin blockchain. They do not have their blockchain. 

The popular blockchain available for creating tokens is Ethereum followed by Neo. 

Ether is a common example of a blockchain where tokens are created, and it is known as the ERC-20 token. NEP-5 token can be acquired from the Neo blockchain.

We can also find BNT, stablecoins, and BAT tokens on the Ethereum blockchain. 

The token can be produced and acquired through ICO and it is mainly used to collect funds for a project (Crowdfunding).

Tokens have more uses than mere digital money. It can be a part of a software application for easy grant access, verifying identity, and tracking products moving through a supply chain.

They can be used to represent digital art such as NFT to certify artistic value. That is to indicate how unique it is. 

A dinner voucher can be an example of a token. A car title can also be another example of the token.

The digital token we have are categorized under the following types

 It is created as fiat currency. They are useful as a means of exchange and store of value. Not prone to volatility. Examples of this token are the stablecoin, BUSD, USDT, and DAI

 They are the token is get converted from the conventional security. For example, shares and stock are converted to digital currency. The security token holder gets the cut from the project profit.

 This is a token created for the development of cryptocurrency. It is issued to fund the development of the crypto community and can serve as an entity to purchase goods and offer services. It is also used to fundraise a starting-up project.

They are cryptographic assets that are used on the blockchain. They certify unique content and can be traded or exchanged.

 This token gives the owner/holder the right to contribute to a crypto project. The holder can influence the operation and the direction of the protocol.

WHAT IS THE DIFFERENCE BETWEEN CRYPTO COINS AND TOKENS?

Coin and token are undoubtfully a means of exchange but we need to understand the difference between them.

• Coins can buy tokens. Although some token has more value than a coin there is a restriction in market liquidity making it difficult to spend token like the coin

• Coin is a digital version of money while a token can represent an asset or deed. Crypto Coin is used for payment, trading, and investment. A token is used to raise funds, to buy a product, and hired for services 

• Coin represents what you’re capable of owning while token denotes what you own.

• Token can move from one owner to another while coins do not move around, it is only the account balance in your wallet that changes. Your history will show the amount you transfer, send or receive. 

• Crypto coin is native to its blockchain while tokens are created and operated on coin blockchain. Token relies on another blockchain

• Token is easy to create and it requires little to no technical knowledge on a decentralized exchange. Some blockchains make it easy to create your token, brand it, and make it available for trading. This is not easy in the case of crypto coins.

The coins and tokens have a lot of similarities. They offer a secured way thereby maintaining the integrity of the crypto digital asset. They can be used to store value and can serve as a medium of exchange. They are part of the crypto ecosystem that allows users to interact with the blockchain

Coin VS Token: Let's Talk About The Difference

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