PH Customz

Members Login
Username 
 
Password 
    Remember Me  
PH Customz -> general discussion -> Liquidity Pools Simplified
Post Info TOPIC: Liquidity Pools Simplified
Makehaste


Veteran Member

Status: Offline
Posts: 31
Date:
Liquidity Pools Simplified
Permalink  

How do liquidity pools actually work? Trying to earn passive income in DeFi, but terms like ‘LP tokens’ and ‘impermanent loss’ confuse me. Any beginner-friendly breakdown?



__________________
Swimmingz


Member

Status: Offline
Posts: 23
Date:
Permalink  

Liquidity pools let you deposit crypto pairs (e.g., ETH/USDC) into a pool so others can trade against it. You earn fees from swaps, but risk impermanent loss if prices swing. Paybis’ guide here explains it step-by-step. Start with stablecoin pairs to minimize risk, and use platforms like Uniswap or PancakeSwap. Always track APY and pool volume—low liquidity = higher slippage. Reinvest fees to compound gains!



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
PH Customz -> general discussion -> Liquidity Pools Simplified


Create your own FREE Forum
Report Abuse 		Powered by ActiveBoard