Strategies for Liquid Mining Fund (LMX) Investors

LMX investors can optimize their holdings through DeFi opportunities such as P2P trading, decentralized exchanges, liquidity provision, staking, and cross-chain compatibility.

The Liquid Mining Fund (LMX) is a fully tokenized special-purpose vehicle that provides exposure to Bitcoin mining. It focuses on immersion cooling technology and sustainable power sources such as hydroelectric power.

Currently, Liquid Mining Fund directly holds private shares of a large, institutional-scale immersion miner in Texas, one of the lowest-cost producers of Bitcoin globally.

Going forward, Liquid Mining Fund will actively seek to acquire Application-Specific Integrated Circuits (ASICs) directly by raising new capital and deploying capital from the proceeds of liquidating its existing holdings at opportunistic intervals. Bitcoin mined from the operation of these ASICs will be distributed to holders of LMX.

LMX offers a variety of strategies for investors. Here's a detailed guide on how to make the most of your LMX holdings through different avenues.

Peer-to-Peer Order Book

The Realio Investment Platform provides an Order Book for peer-to-peer (P2P) exchanges of LMX. Every transaction is purely peer-to-peer, eliminating counterparty risks and intermediaries and staying true to the essence of decentralized finance. There is no slippage, front running, or price manipulation, ensuring a transparent and fair pricing mechanism; each swap involves two parties, two tokens, and a smart contract. Settlements are cost-effective and speedy, no matter the size or type of swap

The tool offers pairing; you can create LMX orders against ERC-20 stablecoins, including RUSD, USDC, and USDT. We will be adding additional pairings in the future.

You can also set your orders as public or private and take any public open orders.

To create orders, follow our step-by-step guide: Liquid Mining Fund (LMX) P2P Order Book

Trade on Uniswap

Uniswap is a popular decentralized exchange (DEX) that allows you to trade LMX seamlessly. LMX can be found at: https://app.uniswap.org/explore/tokens/ethereum/0xc97de7bcee3df809d7e9634e4442d3ae9a5d73d0

Using the Uniswap platform, you can effectively gain access to secondary market liquidity through its liquidity pools. Investors can leverage the available liquidity to execute borderless trading without intermediaries.

When using these exchanges, consider settings such as price slippage, which can affect the final price when trading large amounts or trading with low liquidity pairs. Using smaller trades or setting a maximum slippage tolerance can help mitigate this.

Provide Liquidity on Uniswap and Earn Rewards with Realio DeFi

DeFi platforms offer opportunities to provide liquidity and earn rewards. You can deposit LMX into a Uniswap V2 liquidity pool (with the appropriate counter asset).

Providing liquidity with a Uniswap V2 pool not only improves trading quality on Ethereum, but you will also earn a small percentage of all trading activity in the form of trading fees proportional to your shares of total deposits.

Additionally, you can leverage your liquidity deposits with Realio’s DeFi yield farms at defi.realio.network. The platform supports the following pairings: ETH-LMX, WBTC-LMX, and LMX-RIO.

By providing liquidity to these Uniswap V2 pools, you will receive LP tokens, which can then be staked on the DeFi platform as “proof” of liquidity provided. RIO rewards are distributed proportionally based on the total amount of staked “proofs-of-deposit.”

For detailed instructions on how to participate, please refer to the blog: How to Participate in Liquidity Provider Staking.

Staking on the Realio Network

The Realio Network, launched in April 2023, is a Cosmos SDK Layer-1 Blockchain focused on the issuance and management of digitally native real-world assets (RWAs). Its design is fully open-source, permissionless, and purpose-built.

The Network has built-in EVM compatibility and features a multistaking public Proof-Of-Stake (PoS) consensus mechanism. The Realio Network is currently secured by Realio’s utility token, RIO (Realio Network Token), and its hybrid digital security token, RST (Realio Security Token).

LMX (Liquid Mining Fund), has been added as a bonding token. This means validators and delegators can use LMX tokens to help secure the network and, in return, earn staking rewards. Those who choose to run a validator can also participate in network governance by voting on proposals and decisions.

To learn more about how to stake on the Realio Network and the block rewards involved, check out the, Realio Network Staking Guide.

Bridging to Stellar and Using Realio DEX

Bridging LMX to Stellar opens up additional opportunities for investors. By leveraging cross-chain functionality, you can use the Realio bridge to swap your Ethereum LMX tokens to the Stellar Network. This enables you to access Stellar-based DeFi services and marketplaces.

Stellar’s built-in DEX provides a lower-friction trading environment through lower fees and near-instant settlement time. This DEX is accessible via the Realio Investment Platform at app.realio.fund/simple-swap for a seamless trading interface or at app.realio.fund/advanced-swap for a more complete trading experience.

How to Bridge to Stellar:

Create or Log in to your account at http://app.realio.fund/.

Once logged in, select "Wallet" > find the LMX asset and click on it to expand the asset.

Next, you’ll want to make sure your Realio wallets are whitelisted.

Select the “Manage address whitelist” button and confirm that your destination address is also whitelisted.

If they are not whitelisted, select the checkbox on the right-hand side. (Note: You may need to refresh the page for your whitelist addresses to update)

Now, select the "Cross-Chain Swap" button.

Choose which blockchain you're transferring from ("From" chain) and which blockchain you're transferring to ("To" chain), and then input the amount you want to swap.

Enter the receiving address (note: the blue text address below is your Realio wallet address for the specified chain).

Since LMX is a security representing an investment, you must acknowledge that the issuer’s documents were made available to you.

When done, click the 'Swap" button.

You will be prompted to select the RIO tokens you wish to use for gas fees (you must also hold a minimum .01+ Ethereum (ETH) in your wallet to cover gas fees).

Enter your 2FA authentication, then hit the “Continue” button.

To check to see if your cross-chain swap was successful, go back to your wallet and find the LMX asset. Expand the asset, and you should now see your LMX on the Stellar chain.

How to use the Realio DEX

Create or Log in to your account at http://app.realio.fund/.

Once logged in, select "Wallet" and then from the left-hand side, select “Trade”.

Select a trading pair (e.g., LMX/RIO) from the “Pairs” list on the lower left-hand side.

Choose to Buy or Sell using the toggle and select Market or Limit order type.

Enter the quantity of tokens to trade and review the Market Rate.

Acknowledge issuer documents by checking the box.

Click BUY or SELL, depending on the order in which the trade will be executed.

Monitor your trade in “Open Orders” at the bottom of the page and check your completed trades in Trade History.

To Summarize

The Liquid Mining Fund (LMX) offers diverse investment strategies. With options like peer-to-peer trading, decentralized exchanges, and liquidity provision on Uniswap, LMX investors have multiple avenues to leverage their LMX position. Future expansions, including bridging to Stellar, promise even more opportunities. By staying informed and strategically engaging with these options, LMX investors can effectively benefit from the evolving digital asset landscape.

Disclaimer: This communication is neither an offer to sell LMX tokens or any other security, nor a solicitation of an offer to buy any security, nor a recommendation of any security. Nothing in this message or on the Realio website constitutes investment advice or offers any opinion with respect to the suitability of any security for any holder, and the statements in this message should not be taken as advice to buy, sell or hold any security. A Disclosure Statement with important information about LMX tokens, including material risks of investing in LMX tokens, may be found at https://app.realio.fund/cv2/projects/lmx. The P2P Order Book does not quote prices or engage in market-making, and as a result may offer less liquidity and lower volume than a trading forum actively managed by a registered broker.