🧠 Crypto Glossary: Learn a new term related to trading and cryptocurrencies every day.
22. 💧 Liquidity Pool
It is a set of cryptocurrencies locked in a smart contract to facilitate exchanges on decentralized platforms (DEX). Users who provide liquidity receive rewards in return.
Example: If you provide $BTC and $ETH to a liquidity pool on Uniswap, you can receive a portion of the transaction fees every time someone swaps these tokens.
And there you have it! Every day you'll learn a new term from the crypto world. Ready to become an expert? Well, I don't know about that expert... but at least you're no longer a novice! 🤓
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