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 doesnât mean risk-free.
Understand where the liquidity comes from, how the protocol works, and what risks youâre taking.
đ Do you understand how liquidity works in DeFi?
đ Comment âLIQUIDITYâ if you want a deeper breakdown.
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