OILZ FINANCE AND THE LIQUIDITY IN CRYPTOCURRENCY MARKET

in #defiyield3 years ago

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Liquidity, in simple terms, is the rate at which a financial asset can be easily changed into hard currency in the financial market. In the same vein, liquidity in cryptocurrency means the ease at which a coin can be changed to hard currency or other coins.

Examples: Conversion of Ethereum(ETH) to US Dollar, Conversion of Ethereum to Bitcoin(BTC), Conversion of Solana(SOL) to Pounds, Conversion of Solana to Dogecoin, and so forth.

Liquidity must be present in cryptocurrency and other financial assets. If the level of liquidity is low, it indicates a volatile market, which leads to a high rise in the prices of cryptocurrencies. Conversely, if the Liquidity is high, it indicates a stable market, with few price fluctuations.

OILZ FINANCE AND MARKET LIQUIDITY
The buying and selling of Oilz Finance Token on PancakeSwap are enhanced by the presence of Liquidity in the Market. To get a clearer picture, imagine liquidity as a huge money pool that is shared equally among $OilZ Tokens VS $BNB tokens. To get a particular amount of $OilZ with BNB, a rate of conversion exists. Example 1BNB is equivalent to 89.86 OilZ. By the time a trader purchases $OilZ, there would be an increase in the price per $OilZ and the above-stated conversion rate will be changed. The reverse would be the case when a trader wants to sell $OilZ.

OILZ FINANCE AUTO LIQUIDITY ENGINE
Every Holder of OilZ/BNB can buy and sell their Tokens whenever they want to. Although, the lesser the available liquidity existing in the pool, the poorer the price they will get. The OilZ Finance Auto-liquidity engine intervenes by increasing the level of liquidity in the pool, thereby fixing the issue.

HOW DOES THE OILZ FINANCE AUTO-LIQUIDITY ENGINE (OALE) WORK?

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The OilZ Finance Auto-liquidity Engine inputs Automatic liquidity into the market every two days at about 10: 52 pm Coordinated Universal Time (UTC). A 2% tax fee is imposed on every buy order, and a 5% tax fee on every sell order, which will be stored automatically in an Auto-LP wallet. After Storage, It gets incorporated into the OilZ Finance Protocol smart contract, and this is how 50% of the available OilZ in the wallet is used to automatically purchase BNB at the present market price. The other 50% left in the Auto-LP wallet is used for the liquidity on the OilZ.

This now balances the OilZ/BNB and will then be added automatically as a new Liquidity in the OilZ/BNB market pair. The resultant effect of the above is an increase in the pool's liquidity.

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CONCLUSION
The OilZ Finance Auto-liquidity Engine will continue to perform this action every two days by injecting more Liquidity into the pool. This enables holders of OilZ Token to effortlessly sell off their tokens whenever they want with minimal slippages in the market.

The engine will also allow the sustenance of a stable protocol and ensure the annual percentage yield is held high throughout the existence of OilZ Finance.

PROJECTS INFORMATION

Website: https://oilz.finance/
Telegram: https://t.me/OilZFinanceChat
Twitter: https://twitter.com/OilzFinance
Discord: https://discord.gg/v3PQUtyNsf
Reddit: https://www.reddit.com/user/OilZFinance
YouTube: https://www.youtube.com/channel/UCtw9sTuZSwQxiQ6XSp3MHPA

AUTHOR'S DETAILS
Bitcointalk Username: Nancyo
Bitcointalk Profile: https://bitcointalk.org/index.php?action=profile;u=2759950;sa=summary

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