Why Is There a Big Difference Between the APR Rates in Cent Reward Pool and Liquidity Pools?

Hello everyone. I hope you are well. We are as transparent as possible while managing the Cent project. We publish monthly and weekly reports and informative content via the @centtoken account. We share current data in the reward pool and the current status in the liquidity pools monthly. Many users have asked questions like; "Why is the APR rate in Cent's liquidity pools high? Why is the difference between the earning rate between the reward pool and liquidity pools so obvious? Will the APR rate in the reward pool and liquidity pools decrease/increase over time?" I wanted to answer these and similar questions collectively.

First of all, I should state that; Cent is an actively managed project. We have set a target price for Cent Token. We regularly develop strategies for the token to move around the determined price target. At the same time, Cent is not just a tribal token. We will regularly reduce the inflation of the token as awareness, usability, liquidity and trading volume increase. We have created many liquidity pools for this. "Hive-Engine Transactions, Cent Delegations, Hive/Cent market maker transactions reward" etc. We have many works. And new works will be added to these works. Therefore, we actively manage the reward pool and liquidity pools.

The APR rate was in the range of 30%-40% on the days when the Cent reward pool started distributing rewards. We gradually reduced this rate. The current APR rate is in the range of 18%-20%. We will continue to make regular adjustments to the APR rate, taking into account the profitability of curators who stake Cent. Cent's tribal token feature will never become passive. Curation will continue to be an attractive option for users who stake Cent. However, as I mentioned above, we will also take the necessary measures to ensure that the token moves towards its target price. For this, we will reduce inflation as much as possible. We announced the 'Cent Delegations' study for Cent staking users. New studies will also be launched.

On the other hand, the APR rate in Cent's liquidity pools remains high. There are several reasons for this:

• We have not yet reached the liquidity rate we expected in Cent's liquidity pools. We will keep the APR rates high for a while to encourage more liquidity additions.
• We regularly adjust the APR rates to ensure that Cent moves towards the target price. At the same time, we try to keep Cent investors, curators and liquidity providers profitable by covering the inflation in the reward pool with liquidity pools. For these reasons, liquidity pools serve as a key point in the project.

Currently, we have not reached the target price we set for Cent. At the same time, we still haven't reached the expected liquidity in Cent's liquidity pools. As Cent's price approaches the target price value, the APR rate in the reward pool and liquidity pools will begin to balance as the expected liquidity target in the liquidity pools is reached. See you in new content. Stay tuned.

https://images.ecency.com/p/4i88GgaV8qiFkxbnGCXnHNbt8wcgAMNP6xb3BathLUp7dyDXtepjXNwPtxkJuKrNztsKGvwDuFg7FMVYrjhTCxehzKj2NEeXgXnykujwFZfCMyX5RJ65tWD82a.webp

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