What are EGW Liquidity Pool Tokens, and How Can You Benefit
In this era of cryptocurrencies, ICO’s and IEO’s, one thing which is most needed is the fair price and high liquidity for the token which is being traded. Most of the crypto tokens that command the top slots on the Coinmarketcap carry large communities at their back, ensuring regular buy and sell transactions and constant liquidity.
The market makers majorly provided the liquidity in the market, but with the advent of newer blockchain technologies, anybody can become a market maker and benefit from the transaction costs that a liquidity pool charges to the investors and traders. Even if you have the US $100 in your pocket, you can compete with the big boys. Never before this happened has the blockchain has opened doors for passive income.
It is noted that investors and traders prefer decentralized token swap exchanges like UniSwap instead of order book exchanges. Most of the order book exchanges are centralized and carry hacking and inaccessibility risks, whereas decentralized exchanges directly give the trader the power. You remain in absolute control of your holdings, and each of your conducted transactions is recorded on the blockchain. This revolution dragged the token price of UniSwap (UNI) to all-time highs, and several similar technologies with lower transaction costs are coming up.
Adding liquidity to the tokens is becoming the new business, the famous projects attract buyers and sellers and the liquidity providers earn transaction fees (up to 0.30% per trade) on the regular basis. So, the more you invest more you earn.
In the normal order book-based market, the market makers can manipulate the order book-based exchanges by showing varied prices, which drives the market sentiment. The decentralized exchanges like UniSwap, on the other hand, ensure that all trades are executed on the blockchain, which anyone can access at a later point. With each trade on exchanges like UniSwap, the algorithm sets the price instead of a market maker. Hence, the chances of getting a fair deal on such exchanges are higher.
New tokens prefer decentralized exchanges as it allows them to discover a fair value before they move to order book-based exchanges. The UniSwap uses Ethereum, and with an increase in the price of Ethereum, the gas fees are exponentially higher. We will be discussing LuaSwap, EGW Capital (EGW), and EGW Liquidity Pool (EGWLP) in this article. LuaSwap is based on Tomochain, which costs a fraction of the cost compared to Ethereum and looks similar to UniSwap.
What is EGW Capital?
It’s an organization that helps companies to raise capital, list, and trades their securities on the market. They forayed into blockchain investment banking in the year 2017 and focused on Indian markets. EGW Capital's focus is more on the tokenization of real-world assets like real estate, stocks, and bonds.
The Indian markets remained a challenge as the Government failed to provide a clear directive on the crypto markets. The Indian government failed to draw a clear line between tokenization and Bitcoin. In March 2020, the Supreme Court overruled the Reserve Bank of India's decision, which blocked the crypto companies from using the banking channel. This resulted in more cash-based transactions for Bitcoin and other cryptocurrencies. Hence the government lost a sizeable amount of money in the form of tax which they could have charged if the market is regulated. It is still unclear whether the Indian government will legalize the crypto market and encourage real-world assets tokenization. If so, this will reduce the dominance of the stock exchanges and bring massive foreign investments in the local securities.
EGW Capital earns its revenues by charging companies both equity and cash fee. The equity fee is 5–15% and is a major source of revenue. They offer both sponsored and non-sponsored public offerings. In the case of sponsored offerings, the cost of taking the company public is borne by EGW Capital and results in higher equity and cash fee. In contrast, the non-sponsored offerings, the cost, are borne by the issuer and lower equity and cash fee.
The native token of EGW Capital is EGW which is currently trading on the BitLux OTC markets, designed for high networth investors. EGW token price missed most of the crypto market rally as the Indian government continued to pressure the companies involved in blockchain and the crypto space. The business's market cap is close to US $600 million, which peaked at US $2 billion last year.
EGW Capital is proposing US $100 million IEO of EGW tokens. The IEO will hit the markets soon, and the retail liquidity pool built will help in deriving the fair value of the token and the business.
EGW Capital is the only company focusing on the tokenization of real world assets in the Asian markets. The size of the blockchain tokenization is over US $10 trillion. We can tokenize almost any asset and in full compliance with the security regulators worldwide. This will add trust in the crypto market. The future is blockchain and same cannot be denied or overlooked for a long period time said Rahul Kumar, CEO of EGW Capital.
What are EGW Liquidity Pool Tokens?
EGW Capital is building its own liquidity pool on LuaSwap based on Tomochain. The company will offer EGWLP tokens in the ICO. Any person who will be investing in EGWLP tokens will provide liquidity for EGW tokens and farm EGW tokens in return. EGWLP is offering an APY of up to 60%. The company may add some bonuses, but more details will be available through the whitepaper. So, in a nutshell, the modus operandi will be like this -
An investor will buy the EGW LP token. The pool will be managed by EGW Capital itself to ensure error-free working >> Irrespective, of the volume in the pool, EGW LP token holders will receive EGW tokens >> The EGW LP token holder can cash out his EGW tokens or hold them till the IEO.
EGW Capital will ensure downside protection of invested capital and returns. However, the EGWLP token holder will call to cash out his EGW tokens or stay invested.
Who should invest?
If you have the US $100+ to spare, the EGWLP token ICO is worth investing in. EGW Capital is in the interesting business space, which will be adopted on a mass scale; the company enjoys a superior track record and capable management. The company has invested over US $12 million in Zilliqa and DigiByte on its investors.
The company is regulated in the US and is expected to perform in the investors' best interest.
