Liquidity pools revolutionise cryptocurrency trading by replacing traditional order books. These pools lock user-funded crypto assets into smart contracts, enabling seamless decentralised exchanges (DEXs). Consequently, traders swap tokens directly with pooled reserves, bypassing intermediaries. Providers earn fees, fostering a cycle of liquidity and rewards. How Liquidity Pools Operate: A Step-by-Step Breakdown Users deposit paired assets like ETH/USDT into smart contracts,…
