How much liquidity does a token need?

Liquidity is important for all tradable assets including cryptocurrencies . … It is thus easier to buy or sell cryptocurrencies in a liquid market since buy or sell orders will be filled more quickly due to the larger number of market participants.

The price is determined by a mathematical algorithm that balances buys and sells, and every token in the network maintains a formulaic relationship to others . This creates continuous liquidity and price discovery for each token, regardless of trade volume and without the need for exchange listing.5 Oca 2018

Since you need to provide a 50/50 balance of each crypto asset you provide for liquidity, if one token increases and the other stays stagnant, then the contract will sell your appreciating tokens for the other crypto asset you provide to maintain a 50/50 balance.6 Ara 2021

Check CoinMarketCap to see where you can buy Proof Of Liquidity and with which currencies. For each cryptocurrency, CoinMarketCap provides a list of purchasing options (also known as market pairs). Go to CoinMarketCap and search for Proof Of Liquidity . Tap on the button labeled “Market” near the price chart.