What is Liquidity & Why is it Important? | Learn with Robi!

What is Liquidity?

  • Get a 50% Fee Reward
  • Earn robust BSW tokens
  • Enjoy high APRs on Farms

How do Liquidity Pools Work?

  • A liquidity pool is a smart contract where tokens are locked to provide liquidity.
  • Liquidity providers provide liquidity to the exchanges with the most attractive offers. For example, on Biswap, users earn 50% fee rewards and enjoy the lowest commission of 0.1% on the BNB Chain.
  • AMM uses algorithms to price assets through liquidity pools to enable trading. Different protocols may utilize slightly different algorithms for liquidity pools.

Why is Liquidity Important?

  • Profitable opportunities for users
  • Extra crypto rewards
  • New features and products
  • Global collaborations with potent projects
  • Overall progress in the DeFi ecosystem

What is Slippage?

What is Volatility?

Closing Thoughts

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