🔨Single Farms

1. What is the risk of non-destructive single token mining?

There is no risk of loss of the principal of the user's tokens;

2. What is impermanence loss? Why is the number of participating LP mining fewer?

You can read this article first to understand the calculation of liquidity mining and impermanence loss

What is Impermanent Loss →

When the market fluctuates and your LP asset is exchanged for two types of assets, the corresponding USDT-standard asset is at risk

3. How does CoinWind hedge against impermanence losses?

Users only need to invest in a single token when they come to CoinWind, and the smart contract will automatically match the high-yield liquid mining capital pool and help users automatically hedge against the impermanent losses in liquid mining through a combined mining strategy. At the same time, CoinWind's own funds will maximize the reduction of the impermanence of LP pools through liquidity hedging, so as to ensure the highest profit for users.

4. How to do liquidity hedging?

CoinWind can automatically monitor the pool LP price and the constant product to complete the hedge, which can ensure that impermanence is minimized. For example, when the price drops, there will be more BTC in LP and less USDT, and we will automatically sell the corresponding BTC in exchange for USDT.

5. Under extreme market conditions, will user assets be lost?

No, CoinWind has a professional quantitative team doing hedging, and everyone can withdraw their principal and income at any time.

6. Why is the amount of single token deposits restricted? Will the deposit limit be increased in the future?

CoinWind does this mainly to balance the matching of funds. The higher the matching degree, the higher the profit of participating users. At the same time, the larger the amount of funds, the higher the capital and handicap requirements for liquidity hedging, so many considerations have been made. Soon we will open more quotas, so stay tuned.