Understanding Returns

Alcor incentivizes users to add liquidity to trading pools by rewarding providers with the fees generated when other users trade with those pools.
  • No commission on the deposit / withdrawal of liquidity.
  • The liquidity can be withdrawn at any time.
  • The current commission of providers in the pool: 0.3%.
To provide liquidity, you send in a 50/50 split of the 2 tokens at a market price. Any time someone converts from one of the assets to the other, it charges a 0.3% fee that is paid to the liquidity pool. You get to claim the percentage of the fees based on the percentage of the liquidity pool you have contributed. Market making, in general, is a complex activity. There is a risk of losing money during large and sustained movement in the underlying asset price compared to simply holding an asset.
Before investing in liquidity pools, read the risk description.
The best pairs for earning income are those with high volume and low volatility.