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

Episoder(373)

What causes inflation, and what does it have to do with crypto? - Crypto in Plain English - Episode 285 - by cryptohunt.it

What causes inflation, and what does it have to do with crypto? - Crypto in Plain English - Episode 285 - by cryptohunt.it

What causes inflation, and what does it have to do with crypto? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. Inflation is a hot topic these days,...

1 Nov 20222min

What is money, actually? - Crypto in Plain English - Episode 284 - by cryptohunt.it

What is money, actually? - Crypto in Plain English - Episode 284 - by cryptohunt.it

What is money, actually? We talk a lot about money, cryptocurrencies, tokens, and all that: But have you ever asked yourself what money actually is? Welcome to the Cryptohunt Jam, where we spend one m...

31 Okt 20222min

What is a Central Bank Digital Currency (CBDC) - Crypto in Plain English - Episode 283 - by cryptohunt.it

What is a Central Bank Digital Currency (CBDC) - Crypto in Plain English - Episode 283 - by cryptohunt.it

What is a Central Bank Digital Currency (CBDC) Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. If crypto ever goes mainstream as a currency, it’ll h...

28 Okt 20222min

This is the easiest way to get your first NFT… for free!- Crypto in Plain English - Episode 282 - by cryptohunt.it

This is the easiest way to get your first NFT… for free!- Crypto in Plain English - Episode 282 - by cryptohunt.it

This is the easiest way to get your first NFT… for free! The link for today’s episode: https://www.cryptohunt.it/lessons/example-wallet-valora Welcome to the Cryptohunt Jam, where we spend one minute ...

27 Okt 20222min

Is crypto winter actually a good thing? - Crypto in Plain English - Episode 281 - by cryptohunt.it

Is crypto winter actually a good thing? - Crypto in Plain English - Episode 281 - by cryptohunt.it

Is crypto winter actually a good thing? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. Crypto winter, meaning a significant downturn in the crypto ...

26 Okt 20222min

How Reddit became the largest NFT creator in the world... by not talking about NFTs - Crypto in Plain English - Episode 280 - by cryptohunt.it

How Reddit became the largest NFT creator in the world... by not talking about NFTs - Crypto in Plain English - Episode 280 - by cryptohunt.it

How Reddit became the largest NFT creator in the world... by not talking about NFTs Today we look at the incredible story of how Reddit become the largest NFT creator in the world - and why you've pro...

25 Okt 20222min

What is “Play to Earn” (P2E) - Crypto in Plain English - Episode 279 - by cryptohunt.it

What is “Play to Earn” (P2E) - Crypto in Plain English - Episode 279 - by cryptohunt.it

What is “Play to Earn” (P2E) Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. Today, we’ll talk about a crypto concept that has it’s rapid ups and do...

24 Okt 20222min

The Aptos token debacle: Have we reached peak craziness? - Crypto in Plain English - Episode 278 - by cryptohunt.it

The Aptos token debacle: Have we reached peak craziness? - Crypto in Plain English - Episode 278 - by cryptohunt.it

The Aptos token debacle: Have we reached peak craziness? Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. This weeks’ favorite crypto media punching ...

21 Okt 20222min

Populært innen Business og økonomi

lydartikler-fra-aftenposten
stopp-verden
dine-penger-pengeradet
rss-penger-polser-og-politikk
e24-podden
rss-borsmorgen-okonominyhetene
pengesnakk
utbytte
pengepodden-2
tid-er-penger-en-podcast-med-peter-warren
livet-pa-veien-med-jan-erik-larssen
finansredaksjonen
morgenkaffen-med-finansavisen
rss-markedspuls-2
lederpodden
okonomiamatorene
liberal-halvtime
rss-politisk-preik
rss-pa-konto
stormkast-med-valebrokk-stordalen