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What is a Liquidity Pool in Crypto

What Is A Liquidity Pool In Crypto

What Is A liquidity Pool In Crypto

A liquidity pool in crypto is a crowdsourced pool of cryptocurrencies or tokens that are locked in a smart contract, that is used to facilitate trades between the assets on a decentralized exchange (DEX).

Within crypto the liquidity pool enables people to trade cryptocurrency by providing them with liquidity. Liquidity refers to the ease with which a cryptocurrency token can be swapped with another

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