Liquidity Pool
Pool van tokens in smart contract voor handel.
Liquidity pools are the backbone of AMM-based DEXs. They consist of pairs (or more) of tokens locked in a smart contract. When a user wants to swap token A for token B, they trade against the pool rather than against another person. The pool's algorithm determines the price.
Anyone can become a liquidity provider (LP) by depositing tokens into a pool in the correct ratio. In return, they receive LP tokens representing their share of the pool. When traders swap, a fee is charged and distributed proportionally to all LPs.
The composition of a pool changes as trades occur. If many people buy token A, its reserves decrease and token B increases. LPs end up holding more of the depreciating token, which creates impermanent loss compared to simply holding both tokens.
Liquidity pools enable DeFi trading to function without centralised intermediaries. Their depth directly determines trade execution quality for all DEX users.
Hoe CryptoRadar24 het volgt
CryptoRadar24 monitors pool TVL, volume, and fee generation for major DeFi protocols, showing how deeply an asset's on-chain liquidity is distributed.
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FAQ
How do I earn from a liquidity pool?
Deposit tokens to receive LP tokens. You earn a share of trading fees proportional to your pool share. Some pools offer additional token incentives.
What is an LP token?
It is a receipt token proving your share in a liquidity pool. You burn it to withdraw your deposited tokens plus earned fees.
Can I lose money in a liquidity pool?
Yes, through impermanent loss if token prices diverge, or through smart-contract exploits. Fee income may or may not offset these losses.
What is a single-sided liquidity pool?
Some protocols allow depositing just one token. The protocol either internally balances it or uses a different model than the standard two-token pool.