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 adding liquidity to Uniswap do?
Uniswap incentivizes users to add liquidity to trading pools by rewarding providers with the fees generated when other users trade with those pools . Market making, in general, is a complex activity.
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