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 Jack Dorsey’s “web5”? - Crypto in Plain English - Episode 189 - by cryptohunt.it

What is Jack Dorsey’s “web5”? - Crypto in Plain English - Episode 189 - by cryptohunt.it

What is Jack Dorsey’s “web5”? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Just as you thought you finally understand roughly what web3 means, Jac...

17 Kesä 20222min

Can blockchains do more than just handle money? - Crypto in Plain English - Episode 188 - by cryptohunt.it

Can blockchains do more than just handle money? - Crypto in Plain English - Episode 188 - by cryptohunt.it

Can blockchains do more than just handle money? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. If you’ve followed this podcast closely, you will hav...

16 Kesä 20221min

How large is the crypto market really? - Crypto in Plain English - Episode 187 - by cryptohunt.it

How large is the crypto market really? - Crypto in Plain English - Episode 187 - by cryptohunt.it

How large is the crypto market really? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Bitcoin, Ethereum, crypto winter, boom, crash. Crypto is in th...

15 Kesä 20221min

What is Staked Ethereum (stETH)? - Crypto in Plain English - Episode 186 - by cryptohunt.it

What is Staked Ethereum (stETH)? - Crypto in Plain English - Episode 186 - by cryptohunt.it

What is Staked Ethereum (stETH)? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. You may have heard the name “Staked Ethereum” in the news, as yet an...

14 Kesä 20222min

What is the Bitcoin Lightnig network and why does it exist? - Crypto in Plain English - Episode 185 - by cryptohunt.it

What is the Bitcoin Lightnig network and why does it exist? - Crypto in Plain English - Episode 185 - by cryptohunt.it

What is the Bitcoin Lightnig network and why does it exist? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. By now, you’ve heard many times over that...

13 Kesä 20221min

How do I create my own coin? And should I? - Crypto in Plain English - Episode 184 - by cryptohunt.it

How do I create my own coin? And should I? - Crypto in Plain English - Episode 184 - by cryptohunt.it

How do I create my own coin? And should I? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. How do I create my own crypto coin, and should I? Today, l...

10 Kesä 20221min

What is a Soul Bound Token? - Crypto in Plain English - Episode 183 - by cryptohunt.it

What is a Soul Bound Token? - Crypto in Plain English - Episode 183 - by cryptohunt.it

What is a Soul Bound Token? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: What is an SBT, which is short for Sould Bound Token? The idea of ...

9 Kesä 20221min

Cryptohunt is going live! - Crypto in Plain English - Episode 182 - by cryptohunt.it

Cryptohunt is going live! - Crypto in Plain English - Episode 182 - by cryptohunt.it

Cryptohunt is going live! Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today is a special day for us. Today, we are launching cryptohunt to the pu...

8 Kesä 20221min

Suosittua kategoriassa Liike-elämä ja talous

sijotuskasti
psykopodiaa-podcast
mimmit-sijoittaa
rss-rahapodi
ostan-asuntoja-podcast
rss-rahamania
rss-sisalto-kuntoon
sijoituspodi
rahapuhetta
rss-karon-grilli
herrasmieshakkerit
rss-bisnesta-bebeja
rss-draivi
leadcast
rss-lahtijat
rss-laakispodi
rss-seuraava-potilas
rss-paasipodi
rss-yrittajan-mindset
asuntoasiaa-paivakirjat