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.

Avsnitt(373)

The most expensive NFTs sold to this date - Crypto in Plain English – Episode 13 - by cryptohunt.it

The most expensive NFTs sold to this date - Crypto in Plain English – Episode 13 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: Let’s look at some examples of NFTs that sold for millions and speculate why. One to make main...

14 Okt 20211min

Are NFTs actually useful for artists? - Crypto in Plain English – Episode 12 - by cryptohunt.it

Are NFTs actually useful for artists? - Crypto in Plain English – Episode 12 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: Are NFTs just good for speculation, or are they a new way of helping artists? Last time we dis...

13 Okt 20211min

What makes NFTs so valuable? - Crypto in Plain English – Episode 11 - by cryptohunt.it

What makes NFTs so valuable? - Crypto in Plain English – Episode 11 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: Why people are spending millions of real dollars on NFTs. Last episode, we discussed what NFTs...

12 Okt 20211min

What is a NFT? - Crypto in Plain English – Episode 10 - by cryptohunt.it

What is a NFT? - Crypto in Plain English – Episode 10 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: An easy explanation of NFTs. To explain NFTs, let’s first remember how cryptocurrencies work: ...

11 Okt 20211min

What is a stable coin? - Crypto in Plain English – Episode 9 - by cryptohunt.it

What is a stable coin? - Crypto in Plain English – Episode 9 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: How crypto becomes usable with stable coins The biggest problem with making cryptocurrencies l...

11 Okt 20211min

How to get free Lizard coins into your Metamask - Crypto in Plain English – Episode 8 - by cryptohunt.it

How to get free Lizard coins into your Metamask - Crypto in Plain English – Episode 8 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english. Today: Put some Lizard Coin into your Metamask for free Now that you have Metamask installed, it’s ti...

7 Okt 20211min

Why you should know Metamask - Crypto in Plain English – Episode 7 - by cryptohunt.it

Why you should know Metamask - Crypto in Plain English – Episode 7 - by cryptohunt.it

CLICK HERE to learn more about crypto wallets through a FREE course by cryptohunt.it! 007 Why you should know Metamask Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. ...

6 Okt 20211min

Why you cannot counterfeit Bitcoin - Crypto in Plain English – Episode 6 - by cryptohunt.it

Why you cannot counterfeit Bitcoin - Crypto in Plain English – Episode 6 - by cryptohunt.it

Counterfeit currency has been around for as long as we’ve had money. The Secret Service was famously created to investigate paper money forgery. But with blockchains like Bitcoin, that is no longer ne...

5 Okt 20211min

Populärt inom Business & ekonomi

framgangspodden
varvet
badfluence
rss-jossan-nina
rss-borsens-finest
uppgang-och-fall
rss-svart-marknad
avanzapodden
borsmorgon
rss-dagen-med-di
rss-kort-lang-analyspodden-fran-di
rss-den-nya-ekonomin
tabberaset
svd-tech-brief
fill-or-kill
lastbilspodden
24fragor
rss-inga-dumma-fragor-om-pengar
rss-veckans-trade
kapitalet-en-podd-om-ekonomi