Here’s a tip on how liquidity pools work on a DEX?
Liquidity pools help facilitate smooth token swaps on decentralized exchanges. In Acala’s $ACA /USDT pool, liquidity providers receive:
- A share of trading fees from transactions
- Potential rewards through LP staking, depending on the pool's incentives.
Liquidity provisioning plays a key role in #defi with APRs adjusting based on factors like pool size and activity.