What is a Liquidity Pool? And How Do You Earn from It?”
A Liquidity Pool is like a public pot of money that powers decentralized exchanges (DEXs).
You deposit a pair of tokens (like BNB and USDT), and in return, you earn fees whenever people trade those tokens. This process is called Liquidity Providing.
But here’s the catch:
You can lose money if the token prices change a lot after you enter the pool—this is called impermanent loss.
Still worth it? Many people think so—especially on platforms like PancakeSwap or Uniswap.
Want a full guide on how to start? Drop a comment or repost!
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