In short A pot of tokens deposited by users that a DEX or lending protocol trades or lends against.
Depositors, called liquidity providers, earn a share of fees. Their main risk is impermanent loss when the prices of the pooled assets diverge.
In short A pot of tokens deposited by users that a DEX or lending protocol trades or lends against.
Depositors, called liquidity providers, earn a share of fees. Their main risk is impermanent loss when the prices of the pooled assets diverge.
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