What is a liquidity pool?
A liquidity pool is a collection of tokens used to facilitate crypto trading, lending, and more. The liquidity provider earns a trading fee for providing the tokens needed to make rapid exchanges possible.
Why Are Liquidity Pools Necessary?
Crypto trading typically operates on an order book model, wherein buyers proclaim the highest price for which they will purchase a token and sellers proclaim the lowest. Ideally, the buyer and seller demands would converge – but often enough, they do not.
Continue reading Liquidity Pool: What is a Liquidity Pool in the World of Crypto at Libertas Bella: https://blog.libertasbella.com/glossary/liquidity-pool/
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Yay more Crypto! So much more than money.
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