Without sufficient liquidity, decentralized markets can become difficult to trade in efficiently. Liquidity helps enable swaps, lending, borrowing, and other on-chain activity.
But remember: liquidity doesn’t mean risk-free.
Understand where the liquidity comes from, how the protocol works, and what risks you’re taking.
🔎 Do you understand how liquidity works in DeFi?
👇 Comment “LIQUIDITY” if you want a deeper breakdown.
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