Foren » General » How can you make money from liquidity pools?
Personally, I chose this reliable platform for any liquidity pools and did not regret it. I studied a lot by the way. Every day I start by reviewing price of tokens today and only after that I start making deals. Remember that trading cryptocurrency involves risks, costs, losses and uncertainty. And the main reason for successful trading is a competent strategy.
How can you make money from liquidity pools?
Liquidity pools is a collection of assets locked in a smart contract. User has to deposit their own cryptocurrencies to the liquidity pools. For example, a user can provide liquidity to the ETH-USDT pool in Uniswap by adding ETH and USDT in a 1:1 ratio. In return, LPTs are given to the liquidity providers that represent their share of the holdings in the pool. Trading fees is charged from traders who use that pool for transactions. The liquidity providers get rewarded with a percentage of the trading fees in proportion to their pool share for providing this liquidity.