Decipher Sniper
@tothemoon-001
🎙️ 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. More Web3 101 topics loading...
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Timilehin Ogedengbe
@tfame
Yooo
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