Why should every token consider a liquidity staking pool

A good and healthy liquidity pool is the core of a long-term focused tokens. It makes the token price less susceptible to changes with buys and sells.

Most of the tokens deployed on EVM blockchains use the Automated Market Maker (AMM) setup used by decentralized exchanges like Uniswap, PancakeSwap and others. This setup makes a pair between the token and another asset with a known dollar value, such as the blockchain native coin (BNB, ETH etc.) or a USD Pegged Token, like BUSD or USDT. Once the pair is formed, it is wrapped and transformed into a Liquidity Pair Token (LP Token). The Liquidity Pool is composed of all the existing LP tokens, and these LP tokens together provide the liquidity for the token project, so that when somebody wants to sell their tokens, they get in return the asset paired in the LP tokens.

Most of the times, the Liquidity Pools are created by project owners from Initial Coin Offerings or from their own pocket, but anyone can add liquidity to a project on PancakeSwap (considering BNB Chain), they just need to own the project tokens and an asset to pair them. By doing that, the liquidity provider will earn 0.17% of all transactions. Interesting, right?

But providing liquidity could be even more lucrative, with the Medusa Easy Staking Protocol (MESP), project owners can create their own Liquidity Staking Pool code-free in 2 minutes. With it, investors will receive further interest for locking their LP tokens on the Liquidity Staking Pool.

In order to create this Liquidity Staking Pool, go to Staking as a Service — Medusa Protocol, Create Pool, and at the first box that shows up, asking for token to be used on the pool, introduce the address of the Liquidity Pair, which can be easily found on the token’s Dextools page. After that, continue with the usual pool creation.

With that, project owners can incentivize their investors to provide liquidity and earn interest for doing that.