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
-
The real winner of the 2024 US elections will be crypto
Disclosure: The views and opinions expressed here belong solely to the author and do not represent... -
Cryptoquant CEO Expects Crypto Market to Skyrocket With CZ’s Return — ‘Bullish Vibes Everywhere’
Cryptoquant’s chief executive has expressed optimism about the return... -
Is Rollblock the crypto to lead the 2025 bull run? XRP & SOL
Disclosure: This article does not represent investment advice. The content and materials featured on this page...