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Transform Your Crypto Assets into Earnings with ShapeShift

ShapeShift has added THORChain liquidity pools to its offerings, creating new ways for people to earn by pooling their assets. This move opens up avenues for those holding assets like BTC, which typically don’t generate returns just by sitting in a wallet, to make some extra cash.

Diving into Liquidity Pools on ShapeShift

When you put your assets into one of these THORChain-powered pools on ShapeShift, you’re basically buying into a slice of that pool. As transactions happen—people swapping this for that—you get a cut of the fees, proportional to how much of the pool is yours. It’s a pretty neat way to make your assets work for you.

Getting Your Feet Wet

Starting is pretty simple. You just go to app.shapeshift.com, hook up your wallet with the assets you want to pool, and follow the prompts. ShapeShift is big on keeping things open and easy, so there’s no need for KYC or any hoops to jump through.

Playing the Pool Game

Once you’re set up, you can throw your assets into any pool that’s accepting new liquidity or pull them out if you want. It’s all under your control, with no middleman holding your assets hostage. The deeper the pool (meaning the more assets it has), the lower the fees for swapping, which might sound like a bad thing for your earnings but usually balances out with higher swap volumes.

The Perks of Pooling

For your troubles, ShapeShift gives back in the form of yields on assets that usually wouldn’t earn you anything just by holding them. These returns come from a mix of block rewards and transaction fees and are split between RUNE and whatever asset you’re pooling. How much you make can depend on how busy the pool is, how much of it you own, and what the fees look like.

Heads Up on the Downsides

While it’s all pretty straightforward and potentially profitable, there are a couple of things to watch out for. Impermanent loss can happen if the market value of your pooled assets changes significantly, and there’s always a bit of risk involved when you’re not holding your assets in your own cold wallet. That said, THORChain is known for its solid security and active community, aiming to keep things as safe as possible for everyone involved.