Web3Trader
@john0836
Day 7 of daily attendance Today lets deep dive in to Proof-of-Liquidity mechanism in simple words on which Sunrise is working ■ Proof-of-Liquidity (PoL)-- It combines the traditional idea of securing the network by Proof-of-Stake with providing liquidity to the pools means making funds available for trading or other activities. It is a system which encourage more people to participate in this with a win win strategy for participants and project. ● Main Purpose of PoL Generally in blockchains, validators stake there token and helps in enhancing the security. In Sunrise's Proof-of-Liquidity people not only stake there $RISE and $vRISE but also have an edge over the liquidity provided by others in the networks liquidity hub. ● Role of Liquidity Providers People who add funds (for example tokens ) in Sunrise liquidity pools called Liquidity providers. For providing liquidity they are rewarded with vRise tokens and a share of trading fee generated in these pools.
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Web3Trader
@john0836
● Role of Validators---- People who stake there $RISE and $vRISE helps in securing the network and ensures blockchain runs smoothly. ● Why it's Special--- PoL helps to connect Validators and Liquidity providers which further makes the network security by encouraging more people to participate by either providing liquidity to pools or staking there tokens which is a win win situation. If can add more knowledge you are welcomed in comments which helps all of us in getting deeper . Lets rise with Sunrise 🌅
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