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skillshub com for indians step by step ✌️【365vc.net】✌️Start at ₹500, enjoy reliable and high monthly returns. Your financial growth starts here!Liquidity is a fundamental part of both the crypto and financial markets.

It is the manner in which assets are converted to cash quickly and efficiently, avoiding drastic price swings.

If an asset is illiquid, it takes a long time before it is converted to cash.

You could also face slippage, which is the difference in the price you wanted to sell an asset for vs.

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Liquidity is comparable to having lots of cashiers.

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skillshub com for indians step by step ✌️【365vc.net】✌️Start at ₹500, enjoy reliable and high monthly returns. Your financial growth starts here!On the other hand, illiquidity is comparable to having only one cashier with a long line of customers.

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In contrast, DeFi relies on liquidity pools to function.

skillshub com for indians step by step ✌️【365vc.net】✌️Start at ₹500, enjoy reliable and high monthly returns. Your financial growth starts here!Adecentralized exchange(DEX) without liquidity is equivalent to a plant without water.

It won’t survive.

Liquidity pools provide a lifeline to DEXs.A liquidity pool is a digital pile of cryptocurrency locked in a smart contract.

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skillshub com for indians step by step ✌️【365vc.net】✌️Start at ₹500, enjoy reliable and high monthly returns. Your financial growth starts here!An AMM is a protocol that uses liquidity pools to allow digital assets to be traded in an automated way rather than through a traditional market of buyers and sellers.In other words, users of an AMM platform supply liquidity pools with tokens, and the price of the tokens in the pool is determined by a mathematical formula of the AMM itself.Liquidity pools are designed to incentivize users of different crypto platforms, called liquidity providers (LPs).

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