Earning Income on the Blockchain

The blockchain and crypto space is a multi-billion dollar industry that continues to grow. There are many opportunities to earn yield outside of simple hold and carry strategies that many firms offer.

We specialize in earning income on the blockchain through liquidity pools.

What is Liquidity Pool Investing?

As the blockchain ecosystem develops into an economy of decentralized applications with their own tokens and coins, there has to be a money market where people can swap between coins and tokens to interact with the applications and chains that they wish to.

These markets are funded by investors and their rewards are the trading fees. Rather than market makers of today, aka the banks taking cuts, anyone can be a provider of liquidity for these markets and the rewards are shared proportionally between them. This yield is what we call Blockchain Alpha.

To understand more about becoming earning income on the blockchain through liquidity pool investing, consider downloading our white paper for more information.

  • Blockchain technology has brought us crypto coins, trustless payments, and thousands of applications which utilize the blockchains which they exist on. For these applications to exist, there must be an exchange that allows these tokens to be purchased and sold. And for these exchanges to exist, capital must be available in the form of liquidity pools. These liquidity pools are the lifeblood of all blockchains and with out these capital pools, these applications would not be able to function.

  • Liquidity pools pay investors income received from transactions fees. As application tokens are bought and sold, providers of the pools are capital are paid to provide liquidity.

  • The yield varies dramatically based on the size of the pool, the size of the turnover, and the volatility of the tokens which the liquidity pool is providing capital. We target pools which can return between 15% and 20% per annum.

  • Unlike positions in a token which can up but also down, liquidity pools payout based on a formula and in come cases where there is significant volatility, investors will money. We believe that using good risk management techniques, investors in liquidity pools can consistently get high returns.

    BIR uses proprietary technology and statistical modeling to find the pools which we believe will offer the best risk weighted returns.

FAQs about Blockchain Yield and Liquidity Pools