Today we announce an ability we were unsure of before with the CETO token: providing liquidity. As an experiment, we provided minimal trading pairs for both CETO and BCETO on decentralized exchanges.
Click for CETO-TRX: JUSTSWAP
Click for BCETO-BNB: PANCAKESWAP
HOW IT WORKS
In providing liquidity to an exchange, you are essentially making a transfer to another B/CETO account. You will still incur a 10% transaction fee, which results in dividends to the contract. At the same time, you have to add an equal value amount of the trading pair coins (TRX or BNB).
Now, you will now be providing access to B/CETO for those outside of the contract who wish to acquire these tokens through the exchange, but without going to the B/CETO exchange. However, anyone who swaps for B/CETO will still be bound by the transaction fees and 30-day early withdrawal penalties should they try to sell their tokens for TRX/BNB in the contract.
WHY PROVIDE LIQUIDITY?
There are a few reasons to provide liquidity for your CETO or BCETO:
- Yield farm: That’s what they call the process of earning interest by staking or providing liquidity. Everytime someone swaps for your B/CETO, the exchange charges a liquidity provider fee that goes directly to you for staking your tokens. It’s a popular way of earning passive income.
- Arbitrage: Think you’ll get a better rate than divs on an exchange? Provide liquidity! However, please note the starting prices were purposely set higher than the current (4.9.21) contract price for B/CETO, as an incentive to draw people to our site to exchange.
- Exposure: If you are a true blue, CETO Herd Elephant and you want to bring more eyes on the project while earning a profit, provide liquidity!
WHAT ABOUT WCETO?
We are still working to bring WCETO to you. While we had originally envisioned WCETO as the only way to go outside the CETO contract, as designed, WCETO still has a couple advantages to owning it in the future.
- Go liquid. Instead of providing liquidity, locking up your tokens, you can enjoy liquidity and actively swap WCETO against other TRC-20 compatible tokens.
- Whenever you exchange back into CETO from WCETO, you will always have more CETO value to your tokens due to dividends.
WHERE’S LIQUIDITY FOR ECETO?
Due to the high transaction and contract call fees on the Ethereum blockchain now, we have decided not to provide liquidity ourselves.
However, anyone can and should provide liquidity! Let us know in Discord if you ever end up deciding to do so.
