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March 2023

What Is A Liquidity Pool?

This makes trading difficult because it takes both parties to reach an agreement before a trade can be made. The advantage of using liquidity pools is that it does not require a buyer and a seller to decide to exchange two assets for a given price, and instead leverages a pre-funded liquidity pool. This allows for trades to happen with limited slippage even for the most illiquid trading pairs, as long as...

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