Pool $VTR
Liquidity Pool
refers to a certain amount of tokens or digital assets locked up through a smart contract to provide the necessary liquidity for decentralized exchanges to function.
Liquidity is a fundamental part of any market as it brings stability and speed in executing trades. In the specific case of decentralized finance (DeFi), where there is no intermediary agent role collecting orders from buyers and sellers in the respective order book, the solution found to provide this liquidity was the liquidity pool.
It works through the so-called Automated Market Maker (AMM), a protocol that allows digital assets to be traded, from a liquidity pool, in an automated manner and independent of an Order Book.In practice, users of an AMM platform provide liquidity pools with tokens (LPs), and the price of the tokens in the pool is determined by a mathematical formula of the AMM itself.
After market analysis, we understand that by favoring a 0 rate for trading, we will provide our investors with huge profit and trader opportunities, and with that trading volume we at Virtual Trader will obtain the liquidity pool.
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