Home
News
Liquidity pools have gained massive adoption in the DeFi sector as a way for investors and traders to gain massive income by contributing liquidity on platforms. Unfortunately, only a few such platforms allow investors to get the best out of such pools.
Luckily, a new DEX is making waves in the DeFi space with its innovative approach to Liquidity pools, which gives liquidity pro ideas a run for their money. The latest DEX NovaDEX is built on the Solana blockchain, benefiting from its fast and low-cost transactions. Let us see what makes NovaDEX’s approach better.
NovaDEX’s Active Liquidity Management
NovaDEX introduces a unique feature called Active Liquidity Management, which is exclusive to the Solana blockchain network. This feature allows those who supply liquidity (liquidity providers or LPs) to manage their assets actively within specific price ranges.
Besides, introducing Version 3 (V3) DEX models has made liquidity provision easier. In the NovaDEX V3 model, liquidity providers can define specific price ranges where their capital will be active.
This method lets investors know where their funds are being invested, making capital distribution more efficient and enhancing the possibility of higher returns. Let us look at some of the benefits:
1. Reduced Slippage
In V3 models, liquidity is concentrated within the selected price intervals allocated, while its distribution is broader compared to V2 models. Such concentration decreases slippage in trades, thus making the process more effective.
2. Higher Potential Returns
Liquidity can be concentrated inside a specific band to achieve this. Higher returns are the outcome of less competition for fees and more assets being traded within that range.
3. Adaptable Risk Control
Liquidity providers might restrict investment duration based on their tolerance for risk and perspective on the market. It allows them to handle their capital in a responsive way to the market.
The Security and Decentralization of NovaDEX
In addition to providing liquidity providers with increased control over their pools, NovaDEX offers its consumers platform-wide control. Because NovaDEX operates on a decentralized model, all users who possess NVX, the platform’s native coin, have governance rights.
NVX holders can participate in decisions that will affect the NovaDEX protocol and vote on projects. It is among the platforms’ vision to empower people and to ensure equal rights. Hence, it has become one of the best DeFi projects to be part of.
NovaDEX has been treated with significant consideration and is an issue of security. QuillAudits audited NovaDEX smart contracts to certify that they have no bugs or mistakes. Therefore, the platform users have nothing to worry about.
Conclusion
NovaDEX is available for trading on centralized exchanges like Bitmart and MEXC and decentralized exchanges like Jupiter. Over 1.9K holders have already keyed into the project, and the number is bound to increase in the coming weeks. So, join the project now to enjoy top-notch liquidity services and secure transactions.
Official Links:
Website Twitter Discord Medium
Disclaimer: Any information written in this press release or sponsored post does not constitute investment advice. Thecoinrepublic.com and all its authors do not, and will not endorse any information on any company or individual on this page. Readers are encouraged to do their research and take any actions based on their findings and not from any content written in this press release or sponsored post. Thecoinrepublic.com and all its authors do not and will not be responsible for any damage or loss caused directly or indirectly by the use of any content, product, or service mentioned in this press release or sponsored post.
Serena James has worked as a writer for different media houses in the past. Currently, she is working as a fundamental writer for thecoinrepublic, covering decentralized finance. When she isn’t writing, she can be found skimming and scanning Twitter and other websites to produce mind blowing breaking stories.
