Hoo AMM Pool Launched, New Access to Increase User Yields

According to Hoo users who participated in AMM (Automated Market Maker) test, each liquidity pool of Hoo has listed quantitative data, such as total liquidity, 24H transaction fee, 1 day and 7 days annualized return for users’ reference.
At present, Hoo has opened pools of BTC/USDT, ETH/USDT, SOL/USDT, DOGE/USDT, HOO/USDT and other trading pairs.
Hoo AMM Pool Offers Users Commission of Fees
Recently, Hoo Exchange has added the AMM pool feature after updating.
For DeFi players, AMM (Automated Market Maker Mechanism) has long since ceased to be an out-of-the-way concept, and this mechanism is more commonly used by DEXs such as Uniswap and SushiSwap.
The AMM pool launched by Hoo is equivalent to the CEX evolution version of the Uniswap AMM mechanism.
Back in 2020, Hoo had explored CeFi amid the popularity of DeFi and launched exchange and mining boards such as HooSwap and HooPool.
Some users who participated in the gray test said that Hoo APP can find the entrance of liquidity.
Take BTC/USDT trading pair as an example, users can deposit both BTC and USDT assets proportionally according to the current market price of BTC, at which time the liquidity will be automatically added by the system to the BTC/USDT trading pair in the Hoo spot trading area, and whenever investors makes a purchase or sale transaction in the pair, the users involved in providing the liquidity can divide the fee share proportionally.
According to the rules, users can receive their rewards for liquidity issued on a daily basis.
Hoo has set some conditions in the redemption process of AMM liquidity pools.
In accordance with test participants, on the liquidity pool page, each pool provides some visual quantitative data for users’ reference.
Simply click the Redeem button to withdraw liquidity and dividend rewards, and the assets will be automatically transferred to the wallet account in about 3 minutes.
How to Reduce AMM Costs While Ensuring Security?
Some participants said that more guaranteed security has a great significance of Hoo liquidity pool.
In the past few years, although the on-chain ecology is booming, the on-chain security issues have never ceased.
But now users give a positive comment that all of the user’s operations are within the Hoo site that is a centralized trading exchange, which is equivalent to being done in a controlled space.
One head of Hoo said that the probability of a security incident occurring in the Hoo liquidity pool is almost 0.
Users need to be aware that whether they are providing liquidity at a DEX such as Uniswap or making a market for a trading pair at Hoo, they will face a common problem of the AMM mechanism, namely incurring impermanent losses.
In the case of BTC/USDT pairs, for example, when the price of BTC falls, the liquidity provider will have a corresponding increase in BTC and a corresponding decrease in USDT, resulting in wear and tear on the funds.
Some people in the loop believe that the launch of the AMM pool is a further exploration of CeFi and a benefit to users that is also relevant to the spiritual core of Web3.
It is expected that the Hoo AMM pool will be fully opened.
Someone in the loop expects that this model of opening up the exchange construction portal for users and rewarding them may become a fad with the development of Web3, appearing more and more in centralized exchanges.
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