Welcome to our Help Center 👋

What are liquidity pools?

Written by zes
Updated 1 year ago

Liquidity pools are pools of tokens, locked in a smart contract to facilitate trading by providing liquidity. They are used by Automated Market Makers (AMM) to reduce price change when trading on the decentralized exchanges. It provides a unique, less-speculative reason for people to hold tokens that do not have a large user base yet. 

Did this answer your question?