Whenever you put your assets to work on the blockchain, it’s crucial to balance risk and reward. Although liquidity pools offer a potentially generational opportunity, users must take a realistic look at the DeFi ecosystem and come up with concrete plans to limit their downside.
Liquidity pools: The cornerstone of DeFi
For decentralized finance (DeFi) to function in a fast and efficient manner, DeFi protocols require liquidity. But how does the liquidity pool process work exactly?
Understanding the risks of liquidity pools
Overcoming the challenges
Knowledge is power
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