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AI for Genomics Analysis ✌️【Job Application】✌️From ₹500 to massive profits. Start investing now for high returns!Liquidity is a fundamental part of both the crypto and financial markets.
It is the manner in which assets are converted to cash quickly and efficiently, avoiding drastic price swings.
If an asset is illiquid, it takes a long time before it is converted to cash.
You could also face slippage, which is the difference in the price you wanted to sell an asset for vs.
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Liquidity is comparable to having lots of cashiers.
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In contrast, DeFi relies on liquidity pools to function.
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It won’t survive.
Liquidity pools provide a lifeline to DEXs.A liquidity pool is a digital pile of cryptocurrency locked in a smart contract.
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