Liquidity Pool Participation
SportsIcon also offers staking and liquidity provision programs to encourage platform users to ensure the $ICONS token’s stability. With SportsIcon, users can stake their assets to secure the network and earn rewards, in addition to providing liquidity to a DEX to earn exchange fees.
Each time liquidity is deposited in a pool on a DEX, special tokens called Liquidity Pool tokens are issued to the source address directly proportional to the amount of liquidity they added to the pool. Every time trading takes place the fee that is charged is distributed proportionally to all LPs (liquidity providers) in the pool at that given time of the trade.
Liquidity Pool tokens can be held by the user, traded or staked themselves, creating a secondary derivatives market for the assets. These multi-layer uses are a core part of Decentralized Finance (DeFi) and make up a large part of the rapidly expanding yield farming industry. As a crypto asset, $ICONS can be used for many of these purposes (depending on the programs available). More than just NFTs, SportsIcon introduces new users to the incredible world of DeFi and the opportunities that it holds.