Investing or Liquidity Provision on Nimera Swap

Ivan Skladchikov
December 3, 2020

Note:  Nimera Swap recommends providing liquidity by supplying two currencies at the same time in accordance with the pool proportion or close to the pool proportion. When you invest in one currency, Nimera Swap automatically distributes your asset to the two pool currencies by making a purchase of the missing currency. Thus, you run the risk of making a deal at a disadvantageous price if the volume of your investment is large relative to the total liquidity of the pool.

Nimera Swap provides an opportunity for users to stake their tokens in pools by supplying liquidity. After the liquidity is delivered, the user is assigned a share of the pool ownership in accordance with which he or she will receive a portion of the commission for transactions as long as he or she continues to provide liquidity.

In general, the model looks like this: The user adds liquidity to the pool;

  • Traders make deals; 
  • Nimera Swap collects a commission from traders and part of the commission is returned back to the pool.
  • The liquidity provider can withdraw their liquidity from the pool, and with it commissions in accordance with their share of ownership, that the user takes out from the pool.

At the moment, Nimera Swap charges a 2% commission for trading on all pairs. 0.5% of liquidity is returned to the pool.

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