Creating Liquidity
Last updated
Last updated
A liquidity pool is essentially a pool of tokens that are locked by a smart contract. The main purpose of these pools is to help provide liquidity and facilitate trading on exchanges. They do this by giving users of the exchange a means to buy and sell.
As such, liquidity pools are used by Automated Market Markers (AMM) to minimize drastic price changes (volatility) on crypto exchanges. This characteristic makes liquidity pools ideal for new coins or tokens that do not have a large user base. For the Avalanche project, we will use TraderJoe.
Head over to the next page to see how you can benefit on a high APR from the Liquidity Pool tokens you have just created