A few days ago we announced the Aquarius project.
With Aquarius, our goal is to improve liquidity on Stellar by adding incentives for SDEX traders and AMM liquidity providers. This will allow Stellar users to enjoy larger swaps with less price impact, more trading volume, and path payments with vastly reduced slippage. We believe that a more liquid SDEX will attract a greater audience from other networks where fees are higher, or transactions are slower.
The AQUA token is at the core of Aquarius. AQUA already has over 3,000 trustlines enabled and over 1,000 people have joined our community channels. Thanks to everyone who gave us their feedback, we are thrilled to see your support. ❤️
It is now time to dive deeper into AQUA. 🤿Important! AQUA tokens are issued, but are not yet distributed. They will not be traded on the SDEX or other exchanges until at least August 2021.
So, here’s how you’ll be able to use the AQUA tokens.
💰 Earn rewardsThe Aquarius protocol adds new incentives for market makers who provide liquidity for specific market pairs.
Market makers help keep the market working, so if you want to sell an asset, they are there to buy it. Market makers are typically financial organizations. However, regular traders, when they place a limit order in the order book, can act as market makers too. As an example, if the current Bitcoin price is $30,000 and the trader puts in a buy order at $29,900 (to get a slightly better price in the future) then they will also act as a market maker. This helps provide additional liquidity to potential sellers.
Without market makers, the market would likely have rather low liquidity. In other words, people who want to sell an asset wouldn’t be able to do so without significantly moving the asset price due to a lack of buyers in the market.
In the world of Stellar, making a swap or a path payment also relies on existing orders in the SDEX that were cr...