How DeFi and Liquidity Pools Work: My Journey with PancakeSwap & Uniswap 🚀

Ever wondered how people earn passive income with crypto without constant trading? I’m exploring DeFi platforms like PancakeSwap (on BNB Chain) and Uniswap (on Ethereum) to understand liquidity pools and how they work.

Here’s what I’ve learned:

Liquidity pools are pools of two tokens (like $BNB + $USDT) that anyone can add to and help traders swap instantly.

When you add tokens, you earn a share of the trading fees collected from users.

PancakeSwap is great for beginners with low fees and fast transactions.

Uniswap is secure and powerful but can have higher gas fees.

A risk called impermanent loss means the value of your tokens can change while they’re in the pool, so it’s important to choose your tokens wisely.

I’m excited to keep learning and plan to use testnets next, so I can practice safely before using real tokens.

DeFi lets you earn by adding tokens to pools. Start small, learn step-by-step, and explore how platforms like PancakeSwap and Uniswap work.

Like, share, and comment if you want to learn more about DeFi together!

#DeFi #Crypto #Binance #PancakeSwap #Uniswap #WriteToEarn #LiquidityPools #Blockchain