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…Liquidity Pool A succinct definition of Liquidity Pool Liquidity PoolLevel UpNEWIndividualsBusinessesDevelopersDiscoverCompanyGLOSSARYLIQUIDITY POOLCopy linkShare on TwitterShare on FacebookShare on LinkedinLiquidity PoolA liquidity pool is essentially a reserve consisting of cryptocurrencies that are locked in a smart contract together. They are primarily used to facilitate decentralised finance (DeFi)-related activities, such as lending, trading, and swapping, on a decentralised exchange (DEX)…
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…Liquidity in Crypto Markets: What It Is and Why It Matters Discover how liquidity in crypto markets affects market dynamics and trading strategies, and how liquidity pools work in DeFi. Liquidity in Crypto Markets: What It Is and Why It MattersLevel UpNEWIndividualsBusinessesDevelopersDiscoverCompanyUNIVERSITYTrading7 May 2024|BEGINNERS|7 MIN READLiquidity in Crypto Markets: What It Is and Why It MattersDiscover how liquidity in crypto markets affects market dynamics and trading strategies, and …
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…They are usually an individual or a group that funds a liquidity pool in decentralised finance (DeFi) with their own cryptocurrency assets in exchange for certain rewards. Typically, the rewards come in the form of other tokens or transaction fees generated by the trades on the platform. The transaction fees are denominated in interest rates and vary in proportion to the total liquidity supplied to the pool.Key TakeawayA liquidity provider (LP) is a user who commits their cryptocurrency to a li…
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…How to Use ‘Earn’ Features in the Onchain App From staking to lending and liquidity pools, learn how DeFi can earn you interest on your crypto holdings How to Use ‘Earn’ Features in the Onchain AppLevel UpNEWIndividualsBusinessesDevelopersDiscoverCompanyUNIVERSITYDeFi22 Jul 2022|BEGINNERS|7 MIN READHow to Use ‘Earn’ Features in the Onchain AppFrom staking to lending and liquidity pools, learn how DeFi can earn you interest on your crypto holdings Decentralised finance, or DeFi, is on…
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…What Is Uniswap (UNI)? Learn about Uniswap, an exchange on the Ethereum blockchain that uses the Automated Market Maker model and liquidity pools for decentralised trading. What Is Uniswap (UNI)?Level UpNEWIndividualsBusinessesDevelopersDiscoverCompanyUNIVERSITYAltcoins10 Nov 2023|BEGINNERS|5 MIN READWhat Is Uniswap (UNI)?Learn about Uniswap, an exchange on the Ethereum blockchain that uses the Automated Market Maker model and liquidity pools for decentralised trading. Key Takeaways: Uniswap is…
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…Traders swap tokens directly with liquidity pools based on dynamic pricing formulas. While AMMs are currently generally considered less capital efficient compared to order books, they aim to provide a transparent and permissionless experience without depending on third parties. OTC Markets Institutional investors and large-volume traders often transact over-the-counter (OTC) cryptocurrency directly with market makers off-exchange due to size. However, the bespoke nature means no standardisation …
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…Blockchains allow for a decentralised ledger of ordered transactions to be decided upon independently of any centralised authority. How blockchain technology manages DEXes In other words, rather than a company guaranteeing that a series of financial transactions occurred in a certain order (essentially requiring users to trust that their assessment is accurate), a blockchain allows a series of decentralised nodes to decide the order of transactions through one of a variety of consensus mechani…
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…DEXs offer users a more decentralised service than a standard centralised exchange (CEX) because they are Automated Market Makers (AMM), which use liquidity pools to allow for trades. In traditional order books, the CEX connects buyers and sellers to perform transactions, and users only have access to the tokens it provides. Whereas, on a decentralised exchange, users have access to virtually any token, since any user is able to provide liquidity. To access dozens of DEXs in one app, download …
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…DEXs offer users a more decentralised service than a standard centralised exchange (CEX) because they are Automated Market Makers (AMM), which use liquidity pools to allow for trades. In traditional order books, the CEX connects buyers and sellers to perform transactions, and users only have access to the tokens it provides. Whereas, on a decentralised exchange, users have access to virtually any token, since any user is able to provide liquidity. To access dozens of DEXs in one app, download …
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…DEXs offer users a more decentralised service than a standard centralised exchange (CEX) because they are Automated Market Makers (AMM), which use liquidity pools to allow for trades. In traditional order books, the CEX connects buyers and sellers to perform transactions, and users only have access to the tokens it provides. Whereas, on a decentralised exchange, users have access to virtually any token, since any user is able to provide liquidity. To access dozens of DEXs in one app, download …
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