EFUN's decentralized liquidity pool is the collection of ELP (token) that is locked in a smart contract that provides liquidity to decentralized exchanges (prediction event pool, winner's rewards, etc.). When these decentralized exchanges turn profitable, investors who invested in the decentralized liquidity pool will receive their share of the profit.
How it works
Investors can mint an iNFT, which is a digital asset that proves the holder's investment in the Liquidity Pool. Each iNFT will represent a certain amount of ELP tokens, and the value of an iNFT is determined by the ELP tokens represented and the current pool's NAV*. If the NAV is higher during the investing period than it was when the iNFT was purchased, this means the investor is making a profit.
*NAV is the value of one ELP token. This NAV value will change depending on how well the liquidity pool perform. If liquidity pool is making a profit, then NAV will increase. The initial NAV will be set at 1,000 EFUN.
You can invest in EFUN's decentralized liquidity pool by minting iNFTs or buying them from other users.