Each Uniswap liquidity pool is a trading venue for a pair of ERC20 tokens . When a pool contract is created, its balances of each token are 0; in order for the pool to begin facilitating trades, someone must seed it with an initial deposit of each token.
Read moreWhat does liquidity mean in crypto?
Liquidity in cryptocurrency markets essentially refers to the ease with which tokens can be swapped to other tokens (or to government issued fiat currencies). One way a market achieves liquidity is through the use of order books, like in a stock market.
Read moreWhat are liquidity pools used for?
A liquidity pool can be thought of as a pot of cryptocurrency assets locked within a smart contract, which can be used for exchanges, loans and other applications . In traditional finance (Centralised Finance or CeFi), liquidity is provided by a central organisation, such as a bank or a stock exchange.16 Ara 2021
Read moreHow does crypto liquidity pool work?
A liquidity pool is a crowdsourced pool of cryptocurrencies or tokens locked in a smart contract that is used to facilitate trades between the assets on a decentralized exchange (DEX) .
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