Three Major benefits of adding liquidity on Chainpet $CPET
ChainPet is a decentralized Play-to-Earn Game in the gamefi space in which players earn rewards from playing and winning games. The rewards make game play interesting and enjoyable as game enthusiast play an entertaining game and still earn in the process. On ChainPet, players can grow their asset base and gain rewards by upgrading, breeding, domesticating, and constantly battling elves, which are acquired as assets.
$CPET is ChainPet's native token, built on the BSC Blockchain, and it governs all participants of the ChainPet Community together.
Contract Address: 0xad326Fd5BC8B962063BA51FF142086b4aa1987ec
For liquidity providers, the $CPET/$WBNB liquidity pool is available on PancakeSwap.
Liquidity pools are digital assets delivered as smart contracts that enable traders to buy or sell tokens without having to wait for market participants who require the opposing currency.
To put it another way, imagine you have ETH and want to purchase $CPET in exchange for $ETH. If you do it manually, you'll need to find someone who has $CPET and wants to sell it at the same time, and the two of you will start negotiating and come to an agreement.
You don't have to worry about it with automated market makers and liquidity pools. The liquidity Pool guarantees that there is enough $CPET to pay for your ETH, which speeds up the transaction and eliminates the bureaucratic processes associated with trading tokens.
The prices of tokens in a pool are determined by AMMs using pre-programmed mathematical equations. When a token provider adds liquidity, a one-of-a-kind token is created and sent to the provider's address. The liquidity provider is involved in currency exchanges on both ends. He buys and sells a specific asset at specific prices. It implies that he is creating the market.
Instead of just holding $CPET, you can provide liquidity on PancakeSwap and gain three benefits:
1. You create scarcity by reducing the amount of $CPET available in the market. This raises the value of the $CPET you own.
2. You help to reduce the market volatility of $CPET. The greater the liquidity provided for $CPET, the less each token swap will affect $CPET’s price.
3. You earn more because a portion of the trading fees is paid to you as a reward for being a liquidity provider.
For more Enquires, Visit: