โ Post 2: Importance of liquidity pools in DeFi ๐ง
Liquidity pools let users lock crypto into smart contracts so others can trade or borrow. In return, liquidity providers earn part of trading fees or token rewards.
โจ Benefits:
โ Keep DeFi markets active & fast
โ Earn passive income
โ Risks:
โ Impermanent loss (if token prices move a lot)
โ Bugs in smart contracts
Always research the pool and understand the tokens before providing liquidity.
๐ก Have you tried liquidity farming?
๐ฌ Comment your experience below! ๐ฟ
