Definition Defi terms Liquidity Pool
Defining Defi terms about Liquidity Pool

Defining Defi terms about Liquidity Pool

Liquidity Pool

Liquidity Pool is basically a smart contract that contains funds. A pool where Liquidity Provider (users that add funds to liquidity pools) earns a reward in exchange for providing liquidity to the pool. Those rewards can come from fees generated by the underlying DeFi platform, or from other sources. There is a pool of liquidity that pays their reward in several tokens. Those reward tokens can then be deposited into another liquidity pool to get prizes there, and so on.

 

 

 

Author: pamo3ngkas
Published on: 22/10/2020 18:24 (edited on: 23/10/2020 21:41)
Upvotes

0

Downvotes

0

pamo3ngkas (1.272)
Blockchain Enthusiast
1.731 Reputation
10575 Points
22 Activities