🧵Why 'PulseSwap' will ensure every #Ethereum user will know about #PulseChain, and why it could likely be the largest liquidity farming event in history. Massive adoption for PulseChain is coming. 👇
1/ If you hold a erc20 token in your ETH address, you will have the corresponding prc20 token in your PLS address. You will also have native PLS to pay tx fees, from the 1:1 ETH:PLS mapping. Makes user onboarding EASY. What can you do with the prc20, and why would it have value?
2/ Let's use $LINK as an example. Say you own 1 LINK token worth $30. On PulseChain, you will own 1 pLINK prc20 token. PulseSwap is going to REWARD you with a token (like $CAKE on PankcakeSwap) for bridging over your LINK to Pulse, and adding liquidity to a eLINK/pLINK pool.
3/ While the ratio of erc20 to prc20 tokens may change in the liquidity pool, the COMBINED price of eLINK and pLINK will always add up to the same USD value. You effectively yield farm with (almost) NO RISK to be rewarded with a PulseSwap token that will have value like $CAKE
4/ Almost no risk? The risk comes with admin keys/functions on the erc20 token contracts. A project COULD decide to burn all their prc20 tokens. The outcome? Anyone farming is now effectively rug pulled by the team. The backlash this would cause, makes this UNLIKELY to happen.
5/ What could the value of your pLINK be? If the erc20 is worth $30, maybe pLINK is $.03, $.30, or $3? What is LIKELY, is the speculative price will probably track the erc20 price. Meaning If LINK goes from $30 to $40, maybe pLINK goes from $.30 to $.40.
6/ What this means is you can speculatively trade the prc20 for a tx fee costing CENTS, versus $200-$300 to trade on UniSwap. The prc20 token effectively becomes a derivative trading instrument of the erc20.
7/ Why will every Ethereum user end up hearing about, and likely using Pulse? People like FREE MONEY. Either the prc20 have direct value, OR through the yield farming rewards. EVERY Ethereum project will need to answer the question 'Are you supporting your prc20 token?' 🔥
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