As we approach our imminent listing with Gate.io on September 14th, there are a lot of questions from the community on how it will all work. In our most recent blockchain episode we cover everything you need to know. Watch below!
Let us summarize all the important details.
- Being on a CEX provides an additional fiat onramp to purchase $PING.
- Gate.io provides a much broader scope of trading tools. Many tools that will be eventually available directly through the Sonar Platform. Gate is an especially fitting first exchange for Sonar for this exact reason. In future educational materials we will help our holders learn to make use of these tools.
- Funds on a Central Exchange (CEX) are insured in case of breach or failure of the system. Anything lost in a hack or any other catastrophic event is insured.
- Gate boasts one of the most robust security track records of any Central Exchange. Gate is known as one of the most secure Central Exchanges.
- LP pool farming is available on Gate for those that are interested in doing so. This is another great way to safely make passive income.
- Copy trading is another available feature on Gate, allowing the user to automatically mirror the trades of a chosen successful trader.
- Taxes have been the most asked question. There will be no taxes on transactions while trading within the Gate ecosystem. But transferring from PancakeSwap to Gate will still levy a 10% transaction tax for the one-way transfer.
- Since there are no tax tokenomics inside the Gate ecosystem, there is also no passive reflections such as there is on PancakeSwap. Transactions made within the walls of Gate will not return reflections for PancakeSwap holders.
- The Gate liquidity pool is separated from the PancakeSwap liquidity pool and so arises the possibility of price differences between the two. On launch, the price will match PancakeSwap. However over time there may be swings of 20 to 30%. Exceeding 30% variance will be rare as it presents an excellent arbitrage opportunity for PancakeSwap token holders. Even after taking into account a 10% transaction tax, there is still a great profit to be had by selling tokens into the Gate ecosystem at that point. This is the heart of arbitrage. Over time, the two liquidity pools will balance each other out via this relationship.
- $PING token holders on the PancakeSwap are the supply for the high demand and volume on Gate. Be ready to take advantage of arbitrage opportunities but also be mindful and responsible with your sales. Remember, we are all one family and one economy under the roof of Sonar.