What are Automated Market Makers (AMMs)?

A market maker is an individual or a group that places bids and asks on an exchange. A healthy exchange will have market makers providing depth and liquidity to their order books. In traditional finance, it takes a highly capitalized entity such as a bank or a trading firm to be able to put up the capital to act as a market maker. Uniswap and other DeFi exchanges created the concept of retail Automated Market Making to allow smaller players and retail investors to contribute to the liquidity of the exchange in exchange for rewards, typically paid out in cryptocurrency.

Why Use the PowerPools AMM?

Earn Yield

The PowerPools AMM allows retail investors to fulfill the role of a market maker and earn yield for putting up liquidity on the PowerTrade platform. The yield is credited to your account in realtime, and can be directly withdrawn in cryptocurrency at your convenience.

Stay Liquid

Both the earned yield and the deposited liquidity have no lock-in or staking period, and can be withdrawn at any time if required.

USD Stablecoin Payout

Earned yield is paid out in USD stablecoin (USDC) and not in the form of a proprietary token with questionable liquidity or tokenomics.

Synergy with PowerTrade

PowerPools is tightly integrated with the PowerTrade derivatives exchange platform, allowing you to hedge your risk by placing quick and simple defensive options trades on the same platform. This will be further automated in a future update, making it even simpler for retail investors to protect their investment.

How much does it cost?

So how much does this service cost market makers? The full fee schedule for our services can be found here, but to incentivize liquidity providers, market making orders are subject to lower fees than orders that take liquidity. Market Maker fees on the spot markets are currently 0%, so it costs you practically nothing to create new pools.

How do I get started?

Start earning yield now by creating your first pool on our Web app!

Start earning yield now by creating your first pool on our Mobile app!