🎙️ Happy Sunday, my people!
I hope you’re chilling, relaxing, and letting that wallet breathe a little 😎🌞

It’s your favorite Web3 101 teacher back again, and today’s topic?

💧 LIQUIDITY POOLS EXPLAINED 

Let’s break it down so even your neighbor wey still dey save for piggybank go understand 👇

What’s a Liquidity Pool?
Think of it like a big bowl of tokens. Users (aka liquidity providers) deposit two crypto assets (e.g., ETH & USDC) into this bowl, and these tokens are used by others to trade.

In return, the providers earn fees and sometimes rewards (APY 🔥).

WHY ARE THEY IMPORTANT?
🌀 They power DEXs (like Uniswap)
🌀 They remove the need for traditional order books
🌀 Anyone can become the “bank”
🌀 They make DeFi flow

BUT HERE'S THE KICKER:
⚠️ There’s something called impermanent loss
⚠️ If prices shift too much, you might earn less than just holding
⚠️ Some pools are more volatile than others.

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