{"id":20315,"date":"2023-02-13T09:15:09","date_gmt":"2023-02-13T09:15:09","guid":{"rendered":"https:\/\/zebpay.com\/au\/?p=20315"},"modified":"2023-02-13T09:34:23","modified_gmt":"2023-02-13T09:34:23","slug":"what-is-a-liquidity-pools","status":"publish","type":"post","link":"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools","title":{"rendered":"What is a Liquidity Pool?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#What_Are_Liquidity_Pools\" title=\"What Are Liquidity Pools?\">What Are Liquidity Pools?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Definition_of_Liquidity_Pools\" title=\"Definition of Liquidity Pools\">Definition of Liquidity Pools<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#How_Do_Liquidity_Pools_Work\" title=\"How Do Liquidity Pools Work?\">How Do Liquidity Pools Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#The_Role_of_Liquidity_Pools_in_Decentralized_Finance_DeFi\" title=\"The Role of Liquidity Pools in Decentralized Finance (DeFi)\">The Role of Liquidity Pools in Decentralized Finance (DeFi)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Advantages_of_Using_Liquidity_Pools\" title=\"Advantages of Using Liquidity Pools\">Advantages of Using Liquidity Pools<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Improved_Liquidity_For_Assets\" title=\"Improved Liquidity For Assets\">Improved Liquidity For Assets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Reduced_Slippage_in_Trades\" title=\"Reduced Slippage in Trades\">Reduced Slippage in Trades<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Potential_for_Earning_Passive_Income_Through_Liquidity_Provision\" title=\"Potential for Earning Passive Income Through Liquidity Provision\">Potential for Earning Passive Income Through Liquidity Provision<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Liquidity_Pool_Risks_and_Considerations\" title=\"Liquidity Pool Risks and Considerations\">Liquidity Pool Risks and Considerations<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Volatility_of_Assets_in_the_Pool\" title=\"Volatility of Assets in the Pool\">Volatility of Assets in the Pool<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Smart_Contract_Risks\" title=\"Smart Contract Risks\">Smart Contract Risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Market_Manipulation_and_Frontrunning\" title=\"Market Manipulation and Frontrunning\">Market Manipulation and Frontrunning<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Liquidity_Pool_Use_Case\" title=\"Liquidity Pool Use Case\">Liquidity Pool Use Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Recap_of_Key_Points\" title=\"Recap of Key Points\">Recap of Key Points<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Future_Outlook_for_Liquidity_Pools_and_DeFi\" title=\"Future Outlook for Liquidity Pools and DeFi\">Future Outlook for Liquidity Pools and DeFi<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#FAQs_on_Liquidity_Pools\" title=\"FAQs on Liquidity Pools\">FAQs on Liquidity Pools<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Are_Liquidity_Pools_Safe\" title=\"Are Liquidity Pools Safe?\">Are Liquidity Pools Safe?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#Are_Liquidity_Pools_Profitable\" title=\"Are Liquidity Pools Profitable?\">Are Liquidity Pools Profitable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/zebpay.com\/au\/blog\/what-is-a-liquidity-pools\/#How_Do_You_Make_Money_From_Liquidity\" title=\"How Do You Make Money From Liquidity?\">How Do You Make Money From Liquidity?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>With the expansion of DeFi (Decentralised Finance), many users have been exposed to new opportunities for passive income. The usage of decentralised exchanges (DEXs) has also exploded, which has led to new solutions for liquidity and smooth operation. You may have heard of one such solution in \u201cliquidity pools\u201d. So what are liquidity pools and how does a liquidity pool work?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Are_Liquidity_Pools\"><\/span>What Are Liquidity Pools?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The first technology to understand before delving into liquidity pools is <a href=\"https:\/\/zebpay.com\/au\/blog\/smart-contracts-on-the-blockchain\" target=\"_blank\" rel=\"noreferrer noopener\">smart contracts<\/a>. Smart contracts are sets of code on a blockchain that execute automatically when their conditions are met. First popularized by Ethereum in 2015, they now form the backbone of all decentralized applications, particularly in the DeFi space.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Liquidity_Pools\"><\/span>Definition of Liquidity Pools<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A liquidity pool is a store of funds locked into a smart contract. These funds are crypto assets deposited by users, which are then lent out to individuals and protocols. They form the basis for many DEXs to function since liquidity is essential to having a smooth and seamless trading experience.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Do_Liquidity_Pools_Work\"><\/span>How Do Liquidity Pools Work?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Any decentralised protocol will allow you to lock your funds in a liquidity pool. When you lock your funds in, you earn interest and rewards in the form of crypto tokens in return for lending your assets. This can be a compelling <a href=\"https:\/\/zebpay.com\/au\/blog\/8-ways-to-earn-passive-income-through-crypto\" target=\"_blank\" rel=\"noreferrer noopener\">crypto income source<\/a> for many individuals.&nbsp;<\/p>\n\n\n\n<p>On a platform like Uniswap, you are required to deposit two tokens of equal value. For example, assume ETH is worth $2 and USDC is worth $1. When you lock your tokens in, you would have to deposit an equivalent amount of ETH and USDC. This allows users to trade directly with the liquidity pool.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Role_of_Liquidity_Pools_in_Decentralized_Finance_DeFi\"><\/span>The Role of Liquidity Pools in Decentralized Finance (DeFi)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Early DeFi protocols only allowed you to trade with other individuals on the platform, which is known as peer-to-peer trading. This can be very slow and finicky, as you must find a counterparty willing to buy or sell the exact amount of tokens you want at the price you demand.&nbsp;<\/p>\n\n\n\n<p>Today, you can trade directly with a smart contract. In liquidity pools, there is no counterparty who has to match your order, your tokens come straight from the provided funds. This has led to trades being completed in just a few seconds, with significantly greater liquidity in the market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Using_Liquidity_Pools\"><\/span>Advantages of Using Liquidity Pools<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"384\" src=\"https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/02\/Advantages-of-Using-Liquidity-Pools-1024x384.jpg\" alt=\"Advantages of Using Liquidity Pools\" class=\"wp-image-20316\" srcset=\"https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/02\/Advantages-of-Using-Liquidity-Pools-1024x384.jpg 1024w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/02\/Advantages-of-Using-Liquidity-Pools-300x113.jpg 300w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/02\/Advantages-of-Using-Liquidity-Pools-768x288.jpg 768w, https:\/\/zebpay.com\/au\/wp-content\/uploads\/2023\/02\/Advantages-of-Using-Liquidity-Pools.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Improved_Liquidity_For_Assets\"><\/span>Improved Liquidity For Assets<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Having an order book or P2P system makes it difficult to trade tokens with low traded volumes. Liquidity pools solve this by having an easily accessible store of tokens for you to trade from. It makes it possible to trade in smaller and less frequently traded assets quickly.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduced_Slippage_in_Trades\"><\/span>Reduced Slippage in Trades<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Slippage refers to the difference between the price you choose to trade an asset for and the final price at which it executes. Slippage can be very high on assets with low liquidity since crypto is a volatile asset class. The price can change between when you initiate the trade and when it is finalized. Liquidity pools mitigate this problem by increasing the liquidity available to DEXs.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Potential_for_Earning_Passive_Income_Through_Liquidity_Provision\"><\/span>Potential for Earning Passive Income Through Liquidity Provision<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One of the biggest draws of liquidity pools is the potential to earn rewards from them. These rewards are in the form of special LP (Liquidity Provider) tokens, which can sometimes be staked to further increase returns. Providing liquidity can thus be a stable source of income for many investors.&nbsp;<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/au\/blog\/what-is-staking-crypto\" target=\"_blank\" rel=\"noreferrer noopener\">What is Crypto Staking<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Liquidity_Pool_Risks_and_Considerations\"><\/span>Liquidity Pool Risks and Considerations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Volatility_of_Assets_in_the_Pool\"><\/span>Volatility of Assets in the Pool<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Crypto is a highly volatile asset class. When you deposit tokens, there can be a lengthy lock-in period during which you cannot remove your tokens. During this time, the price of tokens can fluctuate wildly. This can also adversely affect your returns as the value of your asset falls.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Smart_Contract_Risks\"><\/span>Smart Contract Risks<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This risk varies from platform to platform. If the smart contract or blockchain used by a particular protocol has vulnerabilities, they can be exploited by malicious actors. This can put your funds and the seamless functioning of the platform at risk, resulting in lower returns.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Manipulation_and_Frontrunning\"><\/span>Market Manipulation and Frontrunning<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Collusion or insider trading in the crypto market can cause huge price swings in a short time. This can be detrimental to your investment and reduce your earning potential significantly.&nbsp;<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/au\/blog\/crypto-investing-vs-crypto-trading\" target=\"_blank\" rel=\"noreferrer noopener\">Crypto Investing vs Crypto Trading<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Liquidity_Pool_Use_Case\"><\/span>Liquidity Pool Use Case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The most common use case for liquidity pools is in DEXs, as mentioned above. The automated market maker system extensively utilises liquidity from the pools to fulfil orders. However, there are many other problems that liquidity pools have been used to solve.&nbsp;<\/p>\n\n\n\n<p>They can also be used for <a href=\"https:\/\/zebpay.com\/au\/blog\/how-does-defi-lending-work\" target=\"_blank\" rel=\"noreferrer noopener\">DeFi lending<\/a> and borrowing. Borrowers can take a loan on a DeFi platform and draw the funds from a liquidity pool. In exchange, they also have to put up collateral so that the loan is secured.&nbsp;<\/p>\n\n\n\n<p>Alternatively, liquidity pools can also be used in governance. If the number of tokens required to vote on a blockchain platform is too high, users can deposit their tokens into a liquidity pool and combine their funds to govern the platform.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recap_of_Key_Points\"><\/span>Recap of Key Points<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Liquidity pools are smart contracts that hold funds for lending. These funds can be used for liquidity on DEXs, lending to individuals or even for governance. The pros of such an approach include faster trades and the potential to earn rewards. However, they also carry risks such as high volatility and the chance of hacks.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Future_Outlook_for_Liquidity_Pools_and_DeFi\"><\/span>Future Outlook for Liquidity Pools and DeFi<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Liquidity pools have led to the rapid growth of <a href=\"https:\/\/zebpay.com\/au\/blog\/an-introduction-to-defi\" target=\"_blank\" rel=\"noreferrer noopener\">DeFi<\/a>. They have aided its expansion from a small hobby to rival what traditional finance offers. As long as DeFi remains popular, so will liquidity pools.&nbsp;<\/p>\n\n\n\n<p>You can stay up to date about crypto through ZebPay blogs. Trade confidently with <a href=\"https:\/\/zebpay.com\/au\" target=\"_blank\" rel=\"noreferrer noopener\">ZebPay Australia<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/connect.zebpay.com\/account\/UserRegistration?returnUrl=%2FAccount%2FCampaignRegister\" target=\"_blank\" rel=\"noreferrer noopener\">trade now<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_on_Liquidity_Pools\"><\/span>FAQs on Liquidity Pools<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1676279484810\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Are_Liquidity_Pools_Safe\"><\/span>Are Liquidity Pools Safe?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Most liquidity pools and protocols are safe to deposit your funds into. They may be open-source platforms, in which case you can manually verify whether the platform is secure. Be sure to do your research before putting your hard-earned money into a platform.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1676279545975\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Are_Liquidity_Pools_Profitable\"><\/span>Are Liquidity Pools Profitable?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Depositing your funds in a liquidity pool allows you to earn returns ranging from 10-25% per annum, which is very profitable and less volatile than directly trading crypto assets.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1676279571517\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How_Do_You_Make_Money_From_Liquidity\"><\/span>How Do You Make Money From Liquidity?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>In exchange for the liquidity you provide, you receive new crypto tokens known as LP tokens. You also receive a percentage of all platform fees, based on how much liquidity your funds have created. These are the main ways to earn money from liquidity.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>With the expansion of DeFi (Decentralised Finance), many users have been exposed to new opportunities for passive income. The usage of decentralised exchanges (DEXs) has also exploded, which has led to new solutions for liquidity and smooth operation. You may have heard of one such solution in \u201cliquidity pools\u201d. So what are liquidity pools and [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":20317,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[14],"tags":[16],"class_list":["post-20315","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-crypto"],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/comments?post=20315"}],"version-history":[{"count":2,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20315\/revisions"}],"predecessor-version":[{"id":20322,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/posts\/20315\/revisions\/20322"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media\/20317"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/media?parent=20315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/categories?post=20315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/au\/wp-json\/wp\/v2\/tags?post=20315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}