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…In doing so, it helps close the gap between the expected price and the executed price of an order while vastly improving efficiency and reliability. Examples of liquidity pools include Uniswap, Balancer, Bancor, and Curve DAO.Key TakeawayA liquidity pool is a collection of cryptocurrencies used to facilitate transactions on a decentralised exchange.Related WordsSolana Program LibraryThe Solana Program Library (SPL) is a collection of ready-to-use, open-source components for building decentralis…
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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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…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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…By lending your assets to a decentralised exchange (DEX), you are providing liquidity and receiving rewards, which most often stem from trading fees that are accumulated by traders swapping tokens. Liquidity Pools A liquidity pool usually comprises a pair of tokens, with a required value ratio of 1:1, with each pair creating a new market. Contributing to these pools makes you an LP, or liquidity provider. LPs need to contribute an equal value of both tokens to the pool. As an example, if you d…
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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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…The developer paid 19.9 ETH (US$8,000) to install the smart contracts on Ethereum. When the contracts went live, some users began staking yCRV tokens, which is Curve Finance’s moniker for tokens representing shares in Curve’s liquidity pools. These users then proceeded to acquire CRV tokens. This scenario caused consternation and allegations of 'pre-mine' amongst the DeFi community. Before the Curve Finance team could validate its deployed smart contract, more than 80,000 CRV coins were pre…
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…It fulfils many functions inside the SushiSwap ecosystem, including governance rights. Liquidity pools are one of SushiSwap's key mechanisms. They are smart contracts in which SushiSwap users may lock their crypto in exchange for rewards. When users supply liquidity to SushiSwap pools, they are rewarded with SLP tokens. As liquidity providers, they receive trading fees, which may increase by farming the SLP tokens. Users are responsible for their individual cryptocurrency wallets, since the exch…
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