HOW DOES A SINGLE ASSET LIQUIDITY POOL WORK?
Okay, you have been investing assets on a DEX but noticed a new feature added, the Single Asset Liquidity Pool button, and wondering how it works. It is a convenient option that converts your tokens to the right pool weight to add them to one transaction pool. Typically swap fees are applied, affecting the pooling ratio in the swap. Therefore, as the tokens are swapped when removing liquidity, you will receive an equivalent amount of each pooled token in proportion to the pool weight. But what does it mean? centrico pharmacy What is The Benefit of a Single Asset Liquidity Pool? When you invest in a liquidity pool , you have a collection of assets where you, the liquidity provider, deposits your assets to use on the platform. Hence, the structure is different from one entity to another. For instance, when you use a lending platform, it is a single liquidity pool with one asset. In contrast, a DEX has a dual pool making it a total market for specific pairs of as...