It is a way to trade/swap different tokens. Instead of their being a market maker, we see individuals putting up tokens into a pool.
For example, on CubFinance, I put bLEO and BNB into a liquidity pool. So did other people. Thus, when someone goes to trade BNB for bLEO (or the other way around), there is liquidity there for them to make the transaction.
Essentially it ensures there are tokens available when people want them.
It is a way to trade/swap different tokens. Instead of their being a market maker, we see individuals putting up tokens into a pool.
For example, on CubFinance, I put bLEO and BNB into a liquidity pool. So did other people. Thus, when someone goes to trade BNB for bLEO (or the other way around), there is liquidity there for them to make the transaction.
Essentially it ensures there are tokens available when people want them.
Posted Using LeoFinance Beta