What is a Liquidity Pool? - Crypto in Plain English – Episode 26 - by cryptohunt.it
Crypto in Plain English - by cryptohunt.it2 Marras 2021

What is a Liquidity Pool? - Crypto in Plain English – Episode 26 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Today: We explain liquidity pools.

If you want to exchange one token for another, you have to have a market, meaning you'll have to find another person to swap you at the rate you both agree to.

Remember: Centralized exchanges like Binance have enough users to match them directly when they want to swap – for a fee.

Liquidity pools take this concept and decentralize it, so that you don't need a massive amount of users on centralized exchanges anymore.

For that to work, people who hold both tokens of a pair you'd like to swap, send those to a liquidity pool. The tokens then disappear from their wallet and get transferred over to that pool, and in exchange they get a third token that proves ownership over the amount they committed. They can exchange that back at any time.

That's how the pool is getting filled.

But back to you: if you want to exchange two tokens and the corresponding liquidity pool is full enough to fulfill your swap, it'll do that using those tokens that are already in it. You exchange for the token you wanted and pay a fee. That fee is then distributed to the people who originally funded the pool, letting their money work for them. And those rewards can add up quickly if a pool has a lot of activity.

And next we explain staking - in plain English, like always. Hear you then!

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.

Jaksot(373)

What is a mnemonic phrase? - Crypto in Plain English - Episode 261 - by cryptohunt.it

What is a mnemonic phrase? - Crypto in Plain English - Episode 261 - by cryptohunt.it

What is a mnemonic phrase? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. My name is Christian Byza, Co-Founder of Cryptohunt.it and I am your host...

28 Syys 20222min

What is Discord? - Crypto in Plain English - Episode 260 - by cryptohunt.it

What is Discord? - Crypto in Plain English - Episode 260 - by cryptohunt.it

What is Discord? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. My name is Christian Byza, Co-Founder of Cryptohunt.it and I am your host of this d...

27 Syys 20222min

What is a whitepaper? - Crypto in Plain English - Episode 259 - by cryptohunt.it

What is a whitepaper? - Crypto in Plain English - Episode 259 - by cryptohunt.it

What is a whitepaper? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. My name is Christian Byza, Co-Founder of Cryptohunt.it and I am your host of t...

26 Syys 20222min

What exactly is a middleman and why does everybody hate them? - Crypto in Plain English - Episode 258 - by cryptohunt.it

What exactly is a middleman and why does everybody hate them? - Crypto in Plain English - Episode 258 - by cryptohunt.it

What exactly is a middleman and why does everybody hate them? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. My name is Christian Byza, Co-Founder ...

23 Syys 20222min

What is TradFi? - Crypto in Plain English - Episode 257 - by cryptohunt.it

What is TradFi? - Crypto in Plain English - Episode 257 - by cryptohunt.it

What is TradFi? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. My name is Christian Byza, Co-Founder of Cryptohunt.it and I am your host of this da...

22 Syys 20222min

What is the meaning of “fungible”? - Crypto in Plain English - Episode 256 - by cryptohunt.it

What is the meaning of “fungible”? - Crypto in Plain English - Episode 256 - by cryptohunt.it

Are YOU a crypto normie? If so, welcome! CLICK HERE to start (or continue) learning about everything crypto! What is the meaning of “fungible”? Welcome to the Cryptohunt Jam, where we spend one minute...

21 Syys 20222min

What is a "pump and dump"? - Crypto in Plain English - Episode 255 - by cryptohunt.it

What is a "pump and dump"? - Crypto in Plain English - Episode 255 - by cryptohunt.it

Are YOU a crypto normie? If so, welcome! CLICK HERE to start (or continue) learning about everything crypto! What is a "pump and dump"? Welcome to the Cryptohunt Jam, where we spend one minute a day t...

20 Syys 20221min

What is a "bag holder" in the crypto scene? - Episode 254 - by cryptohunt.it

What is a "bag holder" in the crypto scene? - Episode 254 - by cryptohunt.it

Are YOU a crypto normie? If so, welcome! CLICK HERE to start (or continue) learning about everything crypto! What is a "bag holder" in the crypto scene? Welcome to the Cryptohunt Jam, where we spend o...

19 Syys 20221min

Suosittua kategoriassa Liike-elämä ja talous

sijotuskasti
mimmit-sijoittaa
psykopodiaa-podcast
rss-rahapodi
ostan-asuntoja-podcast
rss-rahamania
rahapuhetta
rss-laakispodi
rss-sisalto-kuntoon
herrasmieshakkerit
rss-lahtijat
rss-bisnesta-bebeja
rss-seuraava-potilas
inderespodi
rss-sami-miettinen-neuvottelija
leadcast
timanttia-hiomassa
rss-kohti-unelmia
rss-juurisyy-johtamisesta-kilpailuetua
rss-porssipodi