Peanut — Reduce DeFi mining risks by up to 70%, making it easier to make money

Peanut.trade is a DeFi price balancer system that reduces slippage and unconventional losses through the DEX and CEX dual-fund pool layer architecture. It can help market makers reduce DeFi mining risks by up to 70% , significantly increase trading profits, and make making money easier.

From the perspective of decentralized exchanges, users who participate in liquidity mining can be called market makers regardless of their size, and the act of staking mining or participating in a series of trading activities such as staking mining interest is called market making. Regardless of participating in liquidity mining of any currency, the biggest concern of market makers is that the liquidity of the digital assets involved is too low, and the price collapses when they are attacked by flash loans .

If there are too few participants in the staking mining of a currency on any decentralized exchange, or the staking fund pool is not large enough, then it is easy to have the problem of low liquidity of digital assets. Simply put, there are not enough people willing to buy and sell the currency, resulting in insufficient trading depth. At this time, the price span of a single transaction of the currency in the basic trading pair of the exchange is relatively large. If there is a sudden large order to buy and sell, causing the price of the currency to fluctuate, due to the rules of the decentralized exchange AMM automatic market maker, users who buy and sell the currency will encounter large slippage when buying and selling, resulting in huge losses. You must know that in October 2020 , users on Uniswap lost a total of 66 million US dollars in one month due to slippage problems ! Many people lost all their money!

To pay attention to slippage losses, we must start by understanding them. For example, after a new currency is launched on a decentralized exchange, the trading depth is often shallow because the funding pool is not large enough. According to the constant product AMM theory, the transaction price of the preset currency that users buy and sell will change dramatically due to an occasional large order, causing a large deviation between the actual transaction price and the preset transaction price. This creates slippage. The larger the currency transaction amount, the greater the slippage, and the greater the loss of the trading user.

How much is the loss? On Uniswap ’s W ETH /CBIX7 trading pair, each trading user overpaid $9,766 per transaction! Yes, you read that right! That’s $ 9,766 !

Every decentralized exchange will inevitably suffer from slippage losses due to the AMM mechanism, which will cause user funds to be damaged. How to solve this problem? This still starts from the capital pool. Peanut.trade believes that if the capital pool of the currency is large enough, it can greatly increase the transaction depth, minimize slippage, and reduce user slippage losses.

Peanut.trade is a DeFi price balancer system built on two huge fund pools . It solves the problem of insufficient fund pools for specific currencies of exchanges by building centralized exchange fund pools and decentralized exchange fund pools. Taking the Curve trading platform as an example, after integration with the Peanut system, 90% of Peanut.trade 's funds are injected into the Curve trading platform to become a new currency fund pool, and the other 10% of funds are used as a price balancer. When a designated currency encounters a temporary large order, in addition to the original fund pool of the currency on the Curve trading platform, the Peanut fund pool can also be mobilized, which greatly increases the trading depth of the currency and quickly reduces slippage losses. Therefore, Curve users can reduce losses by up to $ 141 per transaction compared to Uniswap users.

In fact, the theory is relatively simple. The platform or designated currency integrated with Peanut can share Peanut 's capital pool to serve as a price balancer for a certain currency, reducing the user's slippage loss and impermanent loss. It is easy to understand that the more funds, the finer the transaction! The smaller everyone's loss. According to analysis, Peanut.trade can help platform users reduce DeFi mining risks by up to 70% , making it easier for everyone to make money when participating in liquidity mining!

You know, if the exchange is doing well, the cryptocurrency market will be bullish every day! If the exchange is not doing well, the cryptocurrency market will collapse across the board!

Peanut.trade will definitely bring a brand new technological storm to the crypto market!

Official website: https://peanut.trade/

Official community: https://t.me/peanutchinese