💎Add Liquidity
Flashpad Liquidity Feature
In the realm of decentralized exchanges, such as the Flashpad, a liquidity pool stands as a collaborative reservoir of tokens held within smart contracts. Its primary role is to facilitate the seamless exchange of assets, acting as a conduit for effortless trading. Automated market makers (AMMs) power the frictionless and permissionless trading of digital assets through these liquidity pools, reimagining the traditional buyer-seller market paradigm.
However, it's paramount to fully comprehend the benefits and potential downsides of engaging in liquidity provision before making any decisions. This endeavor comes with certain risks, including the concept of impermanent loss. It's important to recognize that if you contribute tokens to a liquidity pool and their value undergoes subsequent fluctuations, the resulting loss is termed an impermanent loss.
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