How to Use and Earn in the BDP Data Market

This post was originally published on Big Data Protocol

The BDP Data Market is here!

It’s a Launchpad for Initial Data Offerings (IDOs), which will happen weekly.

It’s also a DEX for trading datatokens.

You can earn $$$$ on the Data Market — as much as you can earn trading on Uniswap/Sushiswap, and earn 0.5%-10% on EACH datatoken transaction FOREVER.

But you need to learn 1) how the Data Market works and 2) what the risks are.

Quick Summary of How to Earn

See here for a complete tutorial of how to use the Data Market.

biswap

1) Trade datatokens

How: Buy low, sell high

Potential return: uncapped

Where: Trade -> Approve & Swap (BDP for datatoken)

2) Stake BDP to quality datasets

How: be EARLY in staking BDP to valuable datasets

Potential return: uncapped

Where: Pool -> Add Liquidity

3) Earn swap fees

How: stake BDP to valuable datasets + keep BDP staked

Potential return: 0.5%-10% of EACH trade of the datatoken FOREVER

Where: Pool -> Add Liquidity

All of these functions (trade, staking, and earning transaction fees) maximizes the power of the Data Market. They provide curation, liquidity, and price discovery for commercially valuable datasets.

Let’s delve more into how the Data Market works and the risks.

How to Earn

1) Trade datatokens

· Trade from BDP -> datatoken or from datatoken -> BDP

· Select ‘Approve & Swap’, then confirm and complete the transaction

2) Stake BDP to quality datasets

· Begin by reviewing the datatoken’s Pool Statistics

· Select Add Liquidity

· NOTE: staking is the same as becoming a liquidity provider (LP) for the BDP-datatoken pool. You are adding liquidity to the BDP-datatoken pool (i.e. if you stake BDP, part of the BDP is added to the pool in the form of BDP and the rest is added to the pool in the form of the datatoken).

· Unstake any time by selecting Remove Liquidity.

3) Earn transaction fees

· Select Add Liquidity — same as the screenshot above.

· Keep your stake to earn fees on each transaction. In the example above, every trade of that datatoken (buy and sell) results in a 2% swap fee, which is distributed to the stakers in the pool (i.e. liquidity providers) FOREVER as long as they remain staked.

· Stakers get paid proportionally to how much liquidity they have provided.

· Unstake any time by selecting Remove Liquidity.

How the Data Market Works

The Data Market so much more than simply buying and selling datasets using crypto. Here are the four key functions:

1) Tokenization & Purchase

BDP Data Market sources commercially valuable data from our network of over 14,000 professional data providers. The Data Market tokenizes each dataset into a datatoken. Data buyers are able to buy and gain access to the dataset by going to the Use tab and selecting Buy. This will buy 1 datatoken and send it to the publisher.

2) Curation

The Data Market caters to stakers as well. Users will be able to interact with the Data Market by staking to individual datasets, thus curating the platform. Higher amount staked = higher liquidity = higher quality data.

3) Liquidity

The Data Market, by using an Automated Market Maker and a liquidity pool for each datatoken, makes every dataset liquid and tradable.

4) Price discovery

By allowing users to trade the datatoken against BDP, true price discovery takes place.

Risks

Just as you can earn and make $$$$ using the Data Market, you can lose too. Learn how not to get rekt.

1) Trade risk

What can go wrong: buy high, sell low when using the Trade function. This is the same as trading on any DEX. Trade smart (using correct sizing) and you can mitigate this risk.

2) Impermanent loss

What happens when you stake BDP to a datatoken is that you add liquidity to the BDP-datatoken pool. If BDP price goes up relative to the datatoken price, or vice versa, this results in impermanent loss. The risk of IL is the same as on any AMM DEX, like Uniswap. IL also results if you add liquidity to a dataset later than other users who remove their stake. The best solution is to stake BDP to quality datasets that will earn you enough in swap fees to compensate for any IL.

Unlike Uniswap, the risk of a rugpull in the BDP Data Market is significantly reduced. The publishers of datasets in our Data Market are professional data provider companies with reputations they need to protect.

3) Smart contract risk

The BDP Data Market uses Ocean Market’s smart contracts, which are fully audited and battle-tested. Even so, the BDP Data Market is in beta and any smart contract runs the risk of a costly bug.

Have fun and good luck with the Data Market!


How to Use and Earn in the BDP Data Market was originally published in Big Data Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Leave a Comment