“What Is a Liquidity Pool? Explained Simply 💧”

Target audience: Beginners in DeFi.

A liquidity pool = a pot of crypto assets locked in a smart contract.

Traders use it for swapping tokens, and you can earn fees by adding your crypto to it.

💡 Example: ETH-USDC on Uniswap.

You earn a % fee when people trade using that pool.

But beware of impermanent loss.

_Ever provided liquidity? How was your experience?_👇

#DeFi #CryptoEducation #LiquidityPools #Write2Earn

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