Unveiling Liquidity Pools in DeFi! 💧💰
🚀 Want to understand how trades happen on DEXs (Uniswap, PancakeSwap)? The key is Liquidity Pools!
➡️ Pots of TWO tokens ($ETH/$USDT, $BNB/BUSD, etc.) locked in smart contracts.
🤝 Users (LPs) provide tokens and earn fees on trades! 🤑
💡 Essential for decentralized trading and passive income in DeFi.
⚠️ Stay tuned for the Risk of Impermanent Loss (IL)!
Curious to know more? Leave your question in the comments! 👇
#DeFi #Liquidity #LiquidityPool #Cryptocurrencies
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