The world’s largest cryptocurrency exchange Binance has added Aptos (APT) and HashFlow (HFT) to its liquidity pool in BTC and USDT parities. After Binance announced the news on its Twitter account, the prices of altcoin projects increased in double digits with the effect of the positive market atmosphere.
Binance adds Aptos and HashFlow to its liquidity pool
cryptocoin.com As you follow, the new year brought a positive atmosphere to the crypto money market. Cryptocurrencies in the risky asset class are also on the rise as US macroeconomic data strengthens bets that the Federal Reserve will slow down. In addition, partnerships, updates and stock market listings continue at full speed in the market. Not only entering the trade lists of major crypto exchanges, but also being included in the liquidity pool plays an ignitable role for the projects. Today, cryptocurrency exchange Binance announced that it has added Aptos (APT) and HashFlow (HFT) to its liquidity pool with APT/BTC, APT/USDT, HFT/BTC, HFT/USDT pairs.
A liquidity pool contains two assets that users can exchange. There is no need for market makers, buyers or an order book. Also, the price is determined by the ratio of assets in the pool. Users who deposit their token parity into the pool to enable trading are known as liquidity providers. In the details of the announcement, Binance warned about the following:
Adding funds to a liquidity pool carries certain risks. The number of Digital Assets you use may differ from the number of Digital Assets you add to a liquidity pool. Transaction fees may be incurred when adding Digital Assets to or using Digital Assets from a liquidity pool.
Altcoin prices increase by double digits with Binance announcement
The move of the cryptocurrency exchange acted as a catalyst for the prices of related altcoin projects. In this direction, Aptos (APT) started to rise with the Binance announcement. At press time, the altcoin was trading at $9.18, up 18.39% on a daily basis.
APT daily price chart / source: CoinMarketCapSimilarly, the price of HashFlow (HFT) was also positively affected. At press time, the altcoin was trading at $0.3606, up 13.69% on a daily basis.
HFT daily price chart / source: CoinMarketCapWhat is a liquidity pool?
A liquidity pool is a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending and many more functions that we will explore later. Liquidity pools are the backbone of many decentralized exchanges (DEX) such as Uniswap. Users, called liquidity providers (LPs), add the equal value of two tokens to a pool to create a market. In exchange for providing their funds, they receive a transaction fee proportional to their share of the total liquidity from the transactions that take place in their pool. Since anyone can become a liquidity provider, AMMs made market making more accessible.
One of the first protocols to use liquidity pools was Bancor. However, the concept gained more attention with the spread of Uniswap. Some other popular exchanges that use liquidity pools on Ethereum are SushiSwap, Curve, and Balancer. Liquidity pools at these venues contain ERC-20 tokens. Similar equivalents on the BNB Smart Chain (BSC) are PancakeSwap, BakerySwap, and BurgerSwap, where the pools contain BEP-20 tokens.
