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)

Why Bitcoin will never change - Crypto in Plain English - Episode 205 - by cryptohunt.it

Why Bitcoin will never change - Crypto in Plain English - Episode 205 - by cryptohunt.it

Why Bitcoin will never change Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Bitcoin has been one of the most influential technologies we've seen in...

12 Jul 20221min

How an exchange bankruptcy can wipe out your crypto portfolio - Crypto in Plain English - Episode 204 - by cryptohunt.it

How an exchange bankruptcy can wipe out your crypto portfolio - Crypto in Plain English - Episode 204 - by cryptohunt.it

How an exchange bankruptcy can wipe out your crypto portfolio Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Do you have crypto sitting in your acco...

11 Jul 20222min

Regenerative Finance applied: Carbon Credits on the blockchain - Crypto in Plain English - Episode 203 - by cryptohunt.it

Regenerative Finance applied: Carbon Credits on the blockchain - Crypto in Plain English - Episode 203 - by cryptohunt.it

Regenerative Finance applied: Carbon Credits on the blockchain Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Last episode, we introduced you to the...

8 Jul 20222min

What is Regenerative Finance (ReFi)? - Crypto in Plain English - Episode 202 - by cryptohunt.it

What is Regenerative Finance (ReFi)? - Crypto in Plain English - Episode 202 - by cryptohunt.it

What is Regenerative Finance (ReFi)? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today, let's talk about Regenerative Finance and what it has to ...

7 Jul 20221min

Why can you trade crypto 24/7? - Crypto in Plain English - Episode 201 - by cryptohunt.it

Why can you trade crypto 24/7? - Crypto in Plain English - Episode 201 - by cryptohunt.it

Why can you trade crypto 24/7? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. If you’ve ever traded stock, you’ve likely encountered an interesting ...

6 Jul 20221min

Is Bitcoin a hedge against inflation? - Crypto in Plain English - Episode 200 - by cryptohunt.it

Is Bitcoin a hedge against inflation? - Crypto in Plain English - Episode 200 - by cryptohunt.it

Is Bitcoin a hedge against inflation? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. If you've thought recently that everything is getting more expe...

5 Jul 20221min

What is a zk rollup? - Crypto in Plain English - Episode 199 - by cryptohunt.it

What is a zk rollup? - Crypto in Plain English - Episode 199 - by cryptohunt.it

What is a zk rollup? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today we’re going to talk about zk rollups, which several blockchains use to sol...

1 Jul 20221min

What do you want to learn? - Crypto in Plain English - Episode 198 - by cryptohunt.it

What do you want to learn? - Crypto in Plain English - Episode 198 - by cryptohunt.it

What do you want to learn? Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today we do something different. After 197 episodes we would love to ask y...

30 Jun 20221min

Populært innen Business og økonomi

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