281
edits
Difference between revisions of "Liquidity pool"
m
no edit summary
Jimcrypted (talk | contribs) (first edit) |
Jimcrypted (talk | contribs) m |
||
| Line 1: | Line 1: | ||
Liquidity pools are pools of different tokens and cryptocurrencies crowded together and locked into [[Smart contract|smart contracts]]. Liquidity pools are mainly used to trade different tokens on [[DEX]]<nowiki/>es automatically, without the use of a matching engine that finds buyers and sellers willing to trade. In other words, thanks to smart contracts, liquidity pools enable peer-to-peer trading. | Liquidity pools are pools of different tokens and cryptocurrencies crowded together and locked into [[Smart contract|smart contracts]]. Liquidity pools are mainly used to trade different tokens on [[DEX]]<nowiki/>es automatically, without the use of a matching engine that finds buyers and sellers willing to trade. In other words, thanks to smart contracts, liquidity pools enable peer-to-peer trading. | ||
A liquidity provider provides funds to the liquidity pool. They earn a portion of the fees from transactions using the pool | |||
[[Category:Glossary]] | [[Category:Glossary]] | ||