Please note that the following does not represent financial advice.
As those within the PUBLC ecosystem such as publishers, curators and celebrities start earning PUBLX tokens for their contribution in building and promoting the platform, there are options available to those token holders which they may want to consider.
As an ERC-20 token on the Ethereum blockchain, PUBLX tokens are liquid and traded on the Uniswap exchange platform. Currently, Uniswap is the world’s most popular decentralized exchange with weekly trading volume in excess of $4.5 billion USD(1).
Holders of PUBLX tokens are free to exchange their tokens on the Uniswap for Ethereum or any ERC-20 token available.
Another option available to token holders who may not want to immediately sell all their tokens is to add them to the Ethereum/PUBLX Liquidity Pool.
What are Liquidity Pools?
A Uniswap liquidity pool is a trading venue for ERC-20 tokens in pairs. For each pool, there must always be an equal balance of Ethereum and any other ERC-20 token, PUBLX in our case, based on the latest market price. This means that for those who want to take part in the Ethereum/PUBLX liquidity pool, they must deposit an equal value amount of Ethereum and PUBLX. For more information about Uniswap liquidity pools, please check here.
Why would I add my tokens into a Liquidity Pool?
In exchange for providing funds to liquidity pools, the providers earn trading fees from the trades that occur within their pool. Those earnings are proportional to their share of the total liquidity.
Can I add and/or remove from the Liquidity Pool?
For those participating in the pool, there is no commitment and liquidity can be added or removed without any restrictions.
Anytime anyone buys/sells PUBLX, Uniswap charges 0.3% fee to the transaction sender. This fee is later distributed on a pro-rata basis to all the Liquidity Providers. Therefore, the more trades of PUBLX there are the more fees will be distributed to the Liquidity Providers.
Ethereum and PUBLX Tokens
As Liquidity Providers have provided an equal value of Ethereum and PUBLX, this may be deemed as diversifying by providing both assets to the pool. In general, if the Ethereum price increases by 5% and PUBLX increases by 3%, then the average pool price should increase by approximately 4%.
PUBLX Token Long Term Stability
As the value of the Liquidity Pool increases, this better ensures that the PUBLX price becomes more stable meaning that the price impact from future trades is minimized from buying/selling actions.
How do I add to the Ethereum/PUBLX Liquidity Pool?
To add to the liquidity pool, please go to Uniswap. Please make sure to first swap an equal amount of PUBLX to Ethereum or vice-versa. Then go to the pool option and add your desired amounts to the pool. Click here.
How do I track my value in the Liquidity Pool?
There are plenty of reporting tools available on the market. One of those is Zerion where you can track your tokens.
How do I see the value of the total Liquidity Pool?
Uniswap details all transactions of PUBLX in which all buying, selling and pooling transactions are recorded. For the Ethereum/PUBLX pool detail, please check here.
PUBLX token number: 0x1a6658f40e51b372e593b7d2144c1402d5cf33e8
For further information from Uniswap including details regarding general risks and rewards, please click here.
1. Source: from first week of trading in January 2021 → https://info.uniswap.org/home