Single token staking mining

1. What is the risk of non-destructive single token mining?

There is no risk of losing our user's principal investment.

2. What is impermanent loss? Why are there fewer LP miners?

You can read this article first to understand the calculation of liquidity mining and impermanent loss.

What is Impermanent Loss →

When the market fluctuates and your LP asset is swapped for two types of assets, the corresponding USDT-standard asset is at risk.

3. How does CoinWind hedge against impermanent losses?

Users only need to invest a single token when they participate in CoinWind. The smart contract will automatically match high-yield liquid mining capital pools and help users hedge against impermanent losses in liquidity mining through combined mining strategies. At the same time, CoinWind will use its funds to maximally reduce the impermanent loss of LP pools through liquidity hedging, so as to maximize our user’s profits.

4. How to realize liquidity hedging?

CoinWind will automatically monitor the LP price and the constant product to realize the hedge, which can ensure that impermanent loss is minimized. For example, when the price drops, there will be more BTC in LP and fewer USDT, and we will automatically sell the corresponding BTC in exchange for USDT.

5. Under extreme market conditions, will users lose their assets?

No, CoinWind has a professional quantitative team that is in charge of hedging. Everyone can withdraw their principal and income at any time.

6. Why is the number of single token deposits restricted? Will the deposit limit be increased in the future?

CoinWind mainly sets a limit for balance fund matching. The more suitable the matching, the higher the profits for participants. At the same time, the larger the amount of funds, the higher the demand for the liquidity fund. To summarize, the team has made many thorough considerations, and we plan to give more quotas in the near future. Stay tuned!