What is liquidity pools?

December 12, 2022
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What is liquidity pools?
  • LP token or Liquidity Provider Token is a digital coin that was created to use for people who want to use it to create liquidity as the name suggests. Most of them are new currencies that the platform has created to be used as intermediaries and picked specifically to reward investors who deposit their money.
  • Liquidity Provider is an important part in setting the price. If we look at the picture of the structure as a hierarchy, LP is an agency that has a hierarchy above the broker. In other words, if the broker is like a middleman, Liquidity Provider is like a factory that sells products called Bid offer to brokers. be distributed to small consumers or trader

🚀 MegaMoon Liquidity Pools 🚀

  • To deposit your LP you’ll have to deposit another coin with $USDT, the benefit is that you’ll be receiving 0.25% from user transaction gas fees. (We will use $Moon in the future)
  • As an example, you put a $Moon — $MATIC and there’s another person who uses $MATIC to swap to $Moon, another person will have to pay gas fees to proceed, the gas fee is what you’re going to receive. Whichever coin you put down you’ll be getting the gas fee from those coin transactions.
  • The number of LP tokens you receive represents your portion of the $Moon — $MATIC Liquidity Pool. You can also redeem your funds at any time by removing your liquidity.

* If more people are using the feature you’ll also receive more from the gas fee.

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