Not only do liquidity pools offer traders access to decentralized liquidity, they also offer investment opportunities to those wishing to stake assets in the liquidity pool. When a user swaps assets through a liquidity pool, a very small fee is paid to the individuals who are providing the liquidity. To put this in common TradFi terms, those who contribute capital to the liquidity pools essentially earn a fee similar to that of a market maker. Liquidity pools, especially new ones, offer very high yields to investors. This concept is called yield farming, and provides income opportunities for those who understand the concept.
Related posts
-
Top 5 Crypto PR Agencies
If you’re trying to navigate the ever-changing world of cryptocurrency, you’ll need a PR agency. In... -
UK Urged to Consider Bitcoin Reserve as Trump Leads Crypto Revolution
The UK government is urged to create a bitcoin reserve as Trump’s pro-crypto policies drive global... -
Crypto Inflows Hit Record $3.1 Billion, Led by Spot ETFs
Este artículo también está disponible en español. The crypto market witnessed a significant milestone last week...