Compared with POW (Proof of Work) and POS (Proof of Stake), yield farming is a revenue model that obtain (tokens) rewards by providing liquidity for cryptocurrencies.
As the popularity of yield farming continues to increase, the public chain network is becoming more and more congested, which directly leads to the continuous increase of gas fees and the problem of investor income depletion. In addition, various types of contracts have different rules, and they also have their own requirements for asset locking and income distribution. Faced with the rapidly changing market, the problem of low utilization of user assets needs to be solved urgently.
In this industry background, SheepDex （www.sheepdex.org ）, a decentralized cross-chain liquidity aggregation platform based on the BSC chain, came into being.
SheepDex is a decentralized cross-chain liquidity aggregation platform, which allows liquidity providers (LPs) to deploy funds within a certain price range, thereby improving the utilization efficiency of funds and reducing the trading slippage within the corresponding range.In addition, SheepDex also provides a focused trading depth and target decentralized trading liquidity provides better liquidity to those who use this platform.
Here are the Innovations and advantages of SheepDex.
SheepDex can let users automatically set trading ranges, leading lower slip point transactions to protect user assets. Yield Farming can add liquidity and gain profits steadily. Transaction Mining has stable and fast transactions, and real-time refund of handling fee.
SheepDex has Multi-Rate Flexible Function: LPs are allowed to set corresponding charge rates due to varying degrees of risk. Specifically, SheepDex provides three different fee levels for LP-0.05%, 0.30% and 1.00%, and can also add new fee levels through governance. In other words, low-risk trading pairs such as stable coins can choose low rates, and high-risk trading pairs with non-stable coins can choose high rates.
SheepDex has Triple Incentives, which are Transaction fee refund, Liquidity add reward, and LP fee reward.
SheepDex also has Centralized Liquidity Function. In SheepDex, LP is allowed to invest its liquidity within a certain price range. Simply put, it allows liquidity providers (LPs) to deploy funds within a certain price range, thereby improving the efficiency of capital utilization and reducing transaction slippage in the corresponding range. In addition to increasing the efficiency of capital utilization, the benefits of doing so also further concentrate the depth of transactions. However, for most trading pairs, the high price volatility makes choosing a reasonable price range a big problem. When the price deviates from the specified range for a long time, the LP will also be unable to obtain the corresponding rate income for a long time.
SheepDex’s Range Orders Function allows users to place orders within a certain price range of a specified trading pair. When the price enters the range, it will gradually trigger the transaction. When the price goes out of the other end of the range, the transaction will be completed. It can be simply understood a homogeneous version of order book gradient pending orders in the exchange.
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