The Alpha Earn Hub section just launched by Binance
The newly launched Binance Alpha earning coin section just suddenly saw a pop-up message, went to check it out, the entrance is as shown, you can find the corresponding Alpha token V3 mining pool; if you hold coins and want to earn some fee wealth management, consider participating, the Binance wallet is very convenient.
As the trading volume in the Binance Alpha section continues to soar, the entire market is firing on all cylinders.
Directly launched the [High Yield LP Pool Area], popular coins + high-frequency trading pairs, all neatly packaged for you!
You don’t have to search one by one or compare earnings; if you want to earn fee income and play LP, just click in and select!
Annualized returns can even reach 3000%
⚠️ But note: LP is not a mindless sure-win; there are risks too!
🚰 What is a 'pool'? — Liquidity Pool
Liquidity pools are a core mechanism in DeFi (Decentralized Finance). You can think of it as a funding pool for an automated exchange, where users put assets (like USDC + a certain token) into the pool, and others can trade using these assets without matching orders.
For example, when you go to Uniswap, PancakeSwap, OKX Wallet DEX, etc., you will see trading pairs like: DOGE/USDC, PEPE/USDT, XYZ/ETH
These trading pairs each have a corresponding 'pool' behind them, composed of funds provided by many people, allowing other users to buy and sell these tokens at any time.
🧠 Where do the pool earnings come from?
When you inject two types of assets (like DOGE + USDC) into a pool, you become a 'liquidity provider' (LP). You provide liquidity for the exchange, and the platform will proportionally distribute the fees from each trade to you.
For example:
A certain pool charges a 0.3% fee for each trade;
In the past 24 hours, the trading volume of this pool was 10 million USD;
Assuming you occupy 1% of it;
Then you will receive: 10 million * 0.3% * 1% = 300 USD in fees.
👉 The more frequent the trading, the more fees, and the higher the earnings.
📈 Why does high trading volume = high earnings?
High trading volume means that people are frequently buying and selling, such as hot meme coins, newly launched tokens, airdrop expectation coins, etc., which brings more fees — this is the 'source of income' for liquidity providers.
Just like you said:
“Annualized 3500%, 76 USD daily,” this is precisely because the trading volume of this pool is very large.
Moreover, when the assets in the pool fluctuate dramatically (for example, when there are many buyers or sellers, causing significant price pulls), the trading volume is even higher, and your earnings are also higher (but the risks are higher too, which will be discussed later).
⚠️ But there is a key risk: impermanent loss
This sounds complicated, but simply put:
The two types of coins you put in will be automatically exchanged proportionally, and if one of the coins rises too sharply or falls too badly, the system will 'automatically sell low and buy high', causing you to miss out on explosive gains, or even incur losses.
Let’s take another example:
• When you put in, the price of PEPE was 0.001
• Later, PEPE increased fivefold
• But in your pool, the system helped others 'cheaply buy' your PEPE
• What you end up taking out may mostly be USDC + a small amount of PEPE
• Although you earned fees, you lost the part of money from 'holding onto PEPE's explosive growth'
That's why it's called 'impermanent loss' — it doesn't necessarily mean a loss, but compared to just holding, you may have lost potential earnings.
💥 What happens in the pool when the price plummets?
If DOGE drops from 0.1 to 0.01 USD, a 90% crash, what will happen?
When others are frantically selling DOGE, your pool passively takes over.
The system will continuously exchange your USDC for the plummeting DOGE
In the end, when you take it out, you find:
Almost no USDC left
Your hands are full of cheap DOGE
Your principal of 10,000 USD may end up being:
100,000 DOGE (now only worth 1,000 USD)
Very little USDC remaining (or even none)
It means you became a high-priced buyer while thinking you earned fees.
✅ Summary: Invest with caution, don’t over FOMO
