Fear of Missing Out. Liquidity Pool users may lose 50% soon!
Suppose you are a liquidity pool user and have contracted your cryptocurrency out to a pool. You may own LP Tokens from the exchanges your assets are locked in.
Uniswap and Sushiswap are some examples of popular DEXs that distribute LP tokens to their liquidity providers. Liquidity provider tokens or LP tokens are tokens issued to liquidity providers on a decentralized exchange (DEX) that run on an automated market maker (AMM) protocol.
The risk for not removing your liquidity from pools and converting to your original ERC-20s is that the Pulsechain fork of Ethereum will not copy the PRC-20 versions over to your wallet. Instead, they will be in the DEX Pool’s wallet.
LP Tokens Value
Your LP tokens are a redemption asset, so the PRC versions may not carry value on the Pulsechain. The opportunity to double your ERC20 bags has never been better.
Not redeeming your liquidity will potentially lose 50% of token value. Once the Pulschain fork Snapshot happens, your PRC-20 versions will be in the wallet of the LP, and there goes your chance to get your Pulsechain copies...
For this reason, you have a small window of time in the very soon-to-come future to pull out your liquidity from pools, and you can put it right back after.
Take your ERC-20 and NFTs off exchanges. Here is why.
The main reason people put their assets in DEX pools is to earn yield. Yield is the most intelligent investment method for long-term holders, which is the best strategy for retail investors.
The DEX sites can be DDOS attacked, rendering them useless. However, smart contracts go on forever, so you can always interact with the smart contract directly by writing some code.
The only yield generating platform that will gain a Pulsechain copy are users staked in the HEX protocol. This means the HEX users are unaffected and will automatically receive their APY on Ethereum and Pulsechain since the HEX protocol is a 100% complete and decentralized smart contract.
The best yield is genuinely decentralized. Change my mind.
NEW TO CRYPTO? Learn more here https://docs.hex2learn.com/
HowToPulse TwitterStorm Official Telegram Group: https://t.me/pulsetwitterstorm
Written by: @hostshawn via wnotn.com