Selling Locked Liquidity

Selling locked liquidity is an effortless way to gain expedited access to funds which would otherwise remain illiquid. It entails the public listing of a locked liquidity pool owned by the seller, typically at a reduced rate compared to the ETH value it contains. The intention is to incentivize the purchase of said pool in order to avoid the wait time associated with the liquidity lock. When locked liquidity is listed on the Drops Marketplace, ownership of the liquidity lock is transferred to the marketplace’s main smart contract in preparation for its purchase.

Listings may be removed by the seller at any time. DROPS is the primary currency used for buying liquidity within the marketplace. ETH may also be used, should the seller be willing to incur a brokerage fee of 10%.

Use-case example:

John owns a locked liquidity pool which contains 5 Ethereum. John needs money now to fund his trading endeavours, but his liquidity does not unlock for another 6 months. John decides to list his liquidity for sale on the Drops Marketplace, a fully secure and decentralized platform. John creates a listing, and transfers the lock ownership of his pool to the marketplace’s main smart contract. To incentivize the purchase of his liquidity, John sets the listing price at 100 DROPS (Worth 4 Ethereum in this example). When someone buys his liquidity, John receives the money immediately.