Here is a detailed answer:
The liquidity fund in the decentralized financial (DEFI) program means digital cash or account containing and managing various wealth such as Stablecoins, Tokens and Fiat currencies. It acts as a safety network for consumers, giving them a chance to withdraw the funds when needed.
Liquid pool role:
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Liquidity pools:
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- This is often done using Proof Off (POS) algorithms.
Benefits:
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Risk:
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In conclusion, liquidity funds play an important role in decentralized finances, providing a safe and effective way to manage their assets and use funds if necessary.
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