Liquidity providing

Liquidity provision on Svim Finance tokenization marketplace allows investors to contribute capital to facilitate borrowing and lending activities within the investment pool. This process enhances liquidity, improves market efficiency, and provides investors with opportunities to earn returns and diversify risks. Here is a detailed explanation of the liquidity providing feature, with key steps and relevant terms highlighted:

Select Liquidity Pool:

• Decision Making: Investors choose a liquidity pool based on the type of real-world assets tokenized within the pool, such as real estate, commodities, or loans.

• Criteria: Factors influencing selection include the pool's historical performance, the credibility of the underlying assets, and the potential yield.

Understand Underlying Assets:

• Due Diligence: Investors must perform due diligence to understand the nature, value, and risk associated with the underlying real-world assets.

• Transparency: Comprehensive information about the assets, including legal ownership and valuation reports, should be available to assess the investment's stability and reliability.

Connect Crypto Wallet:

• Digital Wallet: Investors need to connect their digital wallet to the platform hosting the liquidity pool.

• Supported Wallets: Common wallets include MetaMask, Trust Wallet, and hardware wallets, ensuring secure and seamless transactions.

Allocate Stablecoins:

• Capital Allocation: Investors allocate their capital, typically in stablecoins like USDT, USDC, or DAI, to the selected liquidity pool.

• Transaction Execution: The platform facilitates the transfer of stablecoins from the investor’s wallet to the liquidity pool smart contract.

Receive Liquidity Pool Tokens:

• Token Issuance: In return for their contribution, investors receive liquidity pool tokens, representing their share of the pool.

• Earning Mechanism: These tokens entitle investors to a portion of the pool’s earnings, including transaction fees, interest payments, and any additional rewards.

Review Investor Dashboard:

• Dashboard Access: Investors have access to an investor dashboard, providing real-time insights into their investment performance.

• Key Metrics: The dashboard displays metrics such as total capital invested, current yield, asset valuation changes, and accrued rewards.

• Transparency and Reporting: Regular updates and reports ensure transparency, helping investors make informed decisions about their investments.