📘 What Is a Liquidity Pool in Crypto? 🤔

A liquidity pool is a smart contract where users lock their tokens so others can trade them instantly. It’s the engine behind DEXs like Uniswap, PancakeSwap, and SushiSwap.

💧 Why It Matters:

Enables instant token swaps without waiting for a buyer/seller

Users who add liquidity earn fees & rewards (aka LP farming)

Powers DeFi protocols, staking, and yield strategies

⚠️ Risk Alert: Impermanent loss is real. Research before providing liquidity.

💡 In short: Liquidity pools are the backbone of DeFi.

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