NEW YORK — ETCPool.us, the mining pool affiliated with no one, has deposited 30 ETC in liquidity to ETCSwap.org and plans to continue depositing more, pool admin, Jamyye, said right now on this blog.
We have said before on our website, “We love to support the Classic community and will use pool funds to help provide liquidity” so this is the first deposit into a liquidity pool officially from ETCPool.us!
Using funds collected by the pool, we will begin depositing liquidity into the ETC Swap on a more regular basis. In the future, we want to create an automated system with full transparency.
As our mining pool is still small, the effect may not be huge. Hopefully others will join in!
The reasons for doing this are simple:
- Better end user experience on ETC Swap
- Increase amount of transactions on blockchain
- Earn money
The more liquidity the better for a swap or exchange. Trades have less slippage, meaning users get a better price. If there is not enough liquidity in a pool, users cannot make large trades. We are by no means considering this deposit large – but wanted to share with the community in hopes others will join. Maybe even Binance will join and provide some liquidity on the BNB/ETC pair 😉.
As miners, we would all love to have blocks that are more full. This would lead to more profits in miners pockets. We have seen in the past, bidding wars can happen for valuable block space. ETC hasn’t yet seen transaction fees consistently over 1 Gwei.
This has been great from an end user experience, but miners can profit from increased block-space competition. Arbitrage bots can automatically make trades to keep price in line with CEXs. These transactions account for a huge percent of ETH transactions currently. We want to bring these to ETC.
As for earning money. By providing liquidity on ETCSwap.org we are able to collect a 0.25% fee on each trade the liquidity pool processes. To be clear, we aren’t investing into ETCSwap.org or giving them money – we are doing this for profit and still have full control over the coins we deposit. These coins would have been sitting in cold storage doing nothing otherwise – might as well put them to good use!
Thanks for reading!