Liquidity Pools

The liquidity pool is made up of equivalent amounts of two or more different trading assets. In this way it’s like an order book – there are only two or more types of assets available, and anyone can swap one of them for the other. There are two main categories of people who interact with […]

Liquidity Pool Farming

Farming When people talk about getting involved in defi, they’re often talking about farming in a liquidity pool. Farming is what motivates the investors to contribute to the pool. When an investor adds to a liquidity pool (see above), they are given a Liquidity Provider token (LP token) that represents a share of the pool. […]