DeFi Explained: Liquidity Pools

in #ethereum3 years ago

What are Liquidity Pools and how are people profiting from them in what is called "Yield Mining". We take a look at the latest developments in Decentralized Finance (DeFi) and explain the most core concepts. Liquidity Pools are used by Automated Market Makers (AMM) such as Uniswap, Curve, and Balancer to reduce price changes when trading assets. Explore the entire process of supplying liquidity, risks of liquidity pools, and liquidity yield farming.

0:00 Introduction
2:09 What are Liquidity Pools
2:49 Example of Liquidity Pool: Uniswap pools
3:32 Trading on Automated Market Makers
5:55 Rewards for Liquidity Providers
6:25 Top Liquidity Pools
7:33 Balancer ($BAL)
8:27 What are the Risks


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