Liquidity Pools

  • Liquidity pools represent a collection of funds.
  • The funds contributed get minted on the SIC/DEFI chain.
  • Minting means adding the funds to a smart contract on the blockchain.
  • Users who contribute funds to the smart contract are called liquidity providers (“LP”).
liquidity pools photo
liquidity pools photo

How are Liquidity Pools Utilized?

Foreign remittances represent a rich opportunity to generate profit by both facilitating foreign remittances and capitalizing on arbitrage. This is exactly what the SIC LP does via its Decentralized Exchange integrated partner platform

  • Liquidity pools are the backbone of the SIC DEX Platform
  • SIC DEX platform utilizes liquidity pools for each currency pair supported on the platform.
  • As the network and demand keeps growing, the liquidity pool will grow too.
  • Growth results in adding more send and receive currency pair pools.
SIC Opportunity

SIC Opportunity from Liquidity Pool

$6.7B billion USD in remittances per day are processed through the SIC/DEX Partner platform.*

LP Size
30 Day Total LP Yield
LP Fee Yield
Farm Yield
LP Fee APR
Farm Yield APR
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$2.6MM
$701,186.66 [26.97%]
$7,022
$630,022
32.86%
294.8%
$1,000 in LP
$1918.37
$1684.73
$233.65
2049.8%
284.28%

**The projection is for illustrative purposes only and based on hypothetical assumptions that may prove to be incorrect. This is based on Staking and holding for 30 full days with no compounding interest. Actual results will differ and may differ substantially from that shown herein. All investments carry significant risk and all investment decisions remain the specific responsibility of that individual or entity. Liquidity pools are a relatively new investment class and are subject to unique and substantial risk, including the risk that the value of an investment in the pool could decline rapidly, including to zero. There is no guarantee that investments in the liquidity pools will result in profits or that they will not result in a full loss or losses. In this case the full and total collapse of the United States Dollar is the greatest risk.

Source: Pew Research Center

Who can contribute to the liquidity pool?

Anyone!!

Anyone can become a liquidity provider.

  • Bank or a financial institution
  • Business
  • Individuals will be able to contribute through the Liquidity option provided by SIC Accounts

Liquidity providers can contribute funds to any currency pair pool. The actual funds will be held at one of SIC’s Partner banks.

liquidity pools photo
liquidity pools photo

How do LP’s get rewarded?

  • In exchange of contributing funds, liquidity providers earn rewards.
  • SIC partners use USDC, and the Blockhain to process global payments.
  • For every transaction, a swap fee gets calculated and paid to the LPs and an LP Token that generates its own fees from transactions gets paid to the LP’s.

Revenue Calculation

  • The transaction fee is between 07 to 125 basis points depending on the market and currency.
  • The more the currency pair pool gets utilized, the higher the transaction fee revenue earned.
  • A percentage of the transaction fee revenue is contributed to the swap fees.
  • The LP who contributed to the receiving currency for the swap, receives the swap fees.
  • The swap fees get distributed to each LP who contributed to the receiving currency pool, an amount equivalent to their contribution amount.
liquidity pools photo
liquidity pools photo

Funds Withdrawal from the Liquidity Pool

  • LP will be able to see their account and funds grow when they earn rewards.
  • The revenue rewards get calculated and added to the smart contract.
  • The LP will be able to view the rewards in real-time.
  • The LPs will be able to withdraw the funds plus rewards at any time.
  • When a withdrawal is initiated, the rewards get deposited from the smart contract to the LPs wallet.
  • When the funds are withdrawn, the smart contract destroys or burns the equivalent amount held in the pools.
  • Proceeds from the profits must be settled by SIC into your account.  This is typically completed within 2 days or less for FIAT.