Liquidity Provider
At digitra.com, your cryptocurrency buy and sell orders generate rewards for you.
At digitra.com, every buy and sell order placed by Market Makers generates rewards. Whether you're an experienced investor or someone just starting in the world of crypto, this could be an excellent opportunity to earn passive income every day.
Our Liquidity Provider mechanism is inspired by liquidity pools introduced by Decentralized Exchanges (DEX). The difference here is that you don't need to create liquidity pools but act as a Market Maker, opening orders that set prices, namely limit orders.
Market Makers place orders in the order book, contributing to liquidity generation. That's why they are called Liquidity Providers and earn rewards from trading fees collected by digitra.com.
You can also become a liquidity provider and earn daily income by placing buy and sell orders on the platform. Orders must always be limit orders, as a market order acts as a market taker.
Check out Liquidity Provider's Litepaper for more details on the product!
Here's how it works:
Start by opening your order
When you make a buy or sell transaction of cryptocurrency using a limit order, arbitrating the currency price, you contribute to market liquidity. In the limit order, you set the desired price.
Earn rewards
Orders that generate rewards need to be opened with a limit price, meaning they must be a limit order. Additionally, they need to act as a maker in the order book, meaning not all limit orders receive rewards, only those that set prices in the book. Buy and sell orders meeting these criteria generate rewards while open and when executed.
Reward distribution
When your order is executed, you receive the Liquidity Provider reward instantly. For orders that remain open, rewards are distributed by digitra.com once a day.
Value of rewards
Digitra.com will allocate 20% of the trading fees collected on the day to these Liquidity Provider rewards, so the distributed volume will depend on the brokerage's trading fee collection. Another variable affecting your earnings is the price of your open order.
Earn according to your strategy
The closer your limit order is to the cryptocurrency's market price, the higher your share of the distributed rewards. This means that if you set a price close to the market price, your rewards will be greater.
How do you earn?
Your reward will be in the cryptocurrency you are trading. If your order is to buy Bitcoin, you will receive Bitcoin. If you sell Bitcoin against Real, you will receive in Reais.
Practical example
Imagine Bitcoin is trading at 300,000 reais. You decide to buy 100 reais of Bitcoin but set a limit price of 295,000 reais per unit. Your buy order will remain open until the Bitcoin price reaches 295,000 reais.
When the daily reward distribution occurs, your open order will be considered, and you will receive a larger share of the rewards because your set price is close to the cryptocurrency's market value.
In contrast, if you placed a limit order for R$ 200,000, it would likely remain open for many days due to its price distance from the market value, but it would generate considerably fewer rewards for you.
What is the difference between Liquidity Provider and Crypto Dividends?
Both offer ways to earn passive income with cryptocurrencies at digitra.com. Crypto Dividends offer rewards for you to keep your assets here, that is, it's a way to thank you for your trust in us. On the other hand, Liquidity Provider offers rewards for your participation in our markets, contributing to bringing liquidity to the platform's currency pairs.
