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luckypengui

What is a liquidity pool?

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A cryptocurrency liquidity pool is a stock of tokens that is locked into an account of a special smart contract. They are used to provide trading activity (trading) and are intensively used by decentralized exchanges

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A DeFi liquidity pool is a smart contract that blocks tokens (usually in pairs) to ensure the liquidity of those tokens on a decentralized exchange. Many cloned "safemoon" smart contracts use coding to unevenly distribute and receive tokens to reward developers. But for example $VTT https://www.vestallytoken.com/ maintains a constant x+y=k liquidity pool, and the $VTT smart contract does not reward anyone from the liquidity pool

 

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