What Are Liquidity Pools in DeFi and How Do They Work? | Binance Academy - Deepstash
What is a liquidity pool?

A liquidity pool is a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending and many more functions.

  • Liqu...

10

STASHED IN:

19

What Are Liquidity Pools in DeFi and How Do They Work? | Binance Academy

academy.binance.com

STASHED IN:

0 Comments

  • The order book is a collection of the currently open orders for a given market.
  • The system that matches orders with each other is called the matching engine. ...

3

STASHED IN:

16

How do liquidity pools work?

Automated market makers (AMM) have changed this game. As no direct counterparty is needed to execute trades, traders can get in and out of positions on token pairs that likely would be high...

4

STASHED IN:

17

Pooling liquidity is a profoundly simple concept, so it can be used in a number of different ways.

  • One of these is yield farming or liquidity mining. Liquidity mining ha...

3

STASHED IN:

16

  • If you provide liquidity to an AMM, you’ll need to be aware of a concept called impermanent loss. In short, it’s a loss in dollar value compared to 

3

STASHED IN:

16

Deepstash helps you become inspired, wiser and productive, through bite-sized ideas from the best articles, books and videos out there.

GET THE APP: