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muln stock ✌️【Interview】✌️Small investments, big profits. Join today and grow your wealth quickly and safely!Liquidity is a fundamental part of both the crypto and financial markets.
It is the manner in which assets are converted to cash quickly and efficiently, avoiding drastic price swings.
If an asset is illiquid, it takes a long time before it is converted to cash.
You could also face slippage, which is the difference in the price you wanted to sell an asset for vs.
muln stock ✌️【Interview】✌️Start investing with just ₹500. Leverage AI tools for smart decisions and maximize your profits. Join now!The price it actually sold for.Imagine waiting to order inside a fast-food restaurant.
Liquidity is comparable to having lots of cashiers.
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In contrast, DeFi relies on liquidity pools to function.
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It won’t survive.
Liquidity pools provide a lifeline to DEXs.A liquidity pool is a digital pile of cryptocurrency locked in a smart contract.
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muln stock ✌️【Interview】✌️Small investments, big profits. Join today and grow your wealth quickly and safely!An AMM is a protocol that uses liquidity pools to allow digital assets to be traded in an automated way rather than through a traditional market of buyers and sellers.In other words, users of an AMM platform supply liquidity pools with tokens, and the price of the tokens in the pool is determined by a mathematical formula of the AMM itself.Liquidity pools are designed to incentivize users of different crypto platforms, called liquidity providers (LPs).
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