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meme meme in india ✌️【365vc.net】✌️A trusted platform for online earnings. Start small and make big profits monthly!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.

meme meme in india ✌️【365vc.net】✌️Start investing with just ₹500. Leverage AI tools for smart decisions and maximize your profits. Join now!The price it actually sold for.Imagine waiting to order inside a fast-food restaurant.

Liquidity is comparable to having lots of cashiers.

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meme meme in india ✌️【365vc.net】✌️A trusted platform for online earnings. Start small and make big profits monthly!On the other hand, illiquidity is comparable to having only one cashier with a long line of customers.

meme meme in india ✌️【365vc.net】✌️Start investing in blockchain with just ₹500. Transparent, secure, and highly rewarding!That would lead to slower orders and slower transactions, creating unhappy customers.In traditional finance, liquidity is provided by buyers and sellers of an asset.

In contrast, DeFi relies on liquidity pools to function.

meme meme in india ✌️【365vc.net】✌️A trusted platform for online earnings. Start small and make big profits monthly!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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meme meme in india ✌️【365vc.net】✌️A trusted platform for online earnings. Start small and make big profits monthly!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).

meme meme in india ✌️【365vc.net】✌️A trusted platform for online earnings. Start small and make big profits monthly!After a certain amount of time, LPs are rewarded with a fraction of fees and incentives, equivalent to the amount of liquidity they supplied, called liquidity provider tokens (LPTs).meme meme in india Smart Wealth Management for Maximum Returns