Liquidity Pool

Liquidity Pools Explained

Basic liquidity pools, such as those used by Uniswap, use a constant product market maker algorithm that ensures the product of their supplied tokens is always the same. Furthermore, due to this algorithm they can provide liquidity regardless of trade size and ensure it will be there for future trades. This happens because no matter how much people want or don’t need in total; supply increases with demand which makes price increase automatically so users trust its stability while trading off-chain making them more likely to hold on token instead sell at lower prices than waiting hours/days until next refill opportunity occurs again (when possible).

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State Money Transmitter Cost Summary

Money Transmitter License Cost Breakdown

Team, I am often asked what are the costs – professional fees, application fees and bonding fees, for obtaining Money Transmitter License in various states. I have attempted to estimate and summarize that expense on a state-by-state basis below. I am often surprised by some of the quotes I receive from services provider – sometimes ranging upward of an unimaginable $2,000,000 for license acquisition in each of the 51 jurisdictions. My argument in response is that approximately 42 state money transmitter licenses are obtained through the NMLS system and have application requirements that are nearly identical. That is, for example, a business plan is require in nearly every jurisdiction but said business plan does not need to be tailored to any particular state if written correct at the onset. 

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