🧠 How do projects attract lasting trading liquidity? Aside from using leading liquidity sources, SODAX owns its own portion of growing liquidity. That means stability, and less reward payouts to maintain service.
Many crypto exchanges rely entirely on users to deposit funds for trading. SODAX is different because we practice Protocol-Owned Liquidity (POL). This means SODAX acts as its own "bank" and owns a significant portion of the assets in the system itself. We do this to make the platform more reliable and secure for you. It ensures that when you want to make a trade, the system is ready to execute it.
Why does SODAX need its own liquidity?
For a swap to happen efficiently, there must always be tokens available. By owning our own liquidity, SODAX ensures there is a guaranteed "baseline inventory" of essential assets like Bitcoin (BTC), Ethereum (ETH), and stablecoins. This ensures the system doesn't run dry during busy times or market volatility.
This is in contrast to platforms that "rent" liquidity from users by promising them high rewards. If those rewards stop, those users often leave, causing the platform to stop working. Because SODAX owns its liquidity, we are not dependent on temporary incentives. This makes the infrastructure durable for the long term.
How does POL work?
POL creates a cycle of growth that strengthens the system over time:
Revenue Collection: When users trade or use the platform, fees are generated.
Reinvestment: Instead of taking all profit out, the protocol automatically reinvests 50% of all revenue back into the POL treasury.
Growth: This money is used to buy more reliable assets (like BTC, ETH, and stablecoins), permanently increasing the size of the protocol's savings.
Yield: These assets don't just sit there; they earn interest and fees, which flow back into the system to support the token and improve the experience for users.
Does this affect my funds?
It is important to note that Protocol-Owned Liquidity is completely separate from your personal deposits. The assets you hold in your wallet or deposit into SODAX are yours. POL belongs to the system.
Even though you don't control the POL, you benefit from it directly. Because the protocol owns this liquidity, there is a deeper, more liquid market for your trades. This helps ensure that when you want to move assets, the execution is predictable and the prices are competitive
Need Help?
If you have any further questions around POL or need assistance, visit our Support Center for more articles and resources, or contact our support team via the button in the bottom right.