What is a liquidity pool and
how does it work?
Liquidity pools are smart contracts that allow investors to
trade coins and tokens regardless of if there are any
buyers or sellers. In the liquidity pool, there is no order book
In an order book, it requires a buyer and a seller to meet at a
certain price for the transaction to happen. This is where
a liquidity pool which is a pool of money comes to the rescue.
It will let you trade an asset regardless of if there is a buyer or a seller.
In liquidity pool You don’t have to give up ownership of your
coins but you can earn fees for providing a service
for other traders who want to swap and trade those
coins and we can earn passive income directly from doing that.