The existence of too much or little liquidity in the stock market significantly influences the value of crypto investments. This is one of the reasons why technological strategies are established to keep the non-custodial finance market in relative equilibrium.
In this sense, the Proof of Liquidity platform offers an alternative based on blockchain technology to increase liquidity flow through the betting mechanism using liquidity tests instead of betting on conventional tokens.
This liquidity-generating system also reduces the volatility of digital assets frozen by the betting system, which favors the investment holder.
What other benefits does the Proof of Liquidity platform offer?
• Controls liquidity imbalances in the stock market
• Keeps the price of digital assets safe from inflation
• It boosts the negotiation of digital assets by connecting the POL-X token with the node to promote the obtaining of a greater number of votes
• Promotes the proof of stake system as a resource to generate liquidity in the securities market.