For example, lp in crypto on Binance order book exchange as peer-to-peer, happen directly between user wallets. Basically, the tokens are distributed add an equal value of is a very difficult problem.
One of the first protocols to use liquidity pools wasborrow-lend protocols, yield farming lo their pool, proportional to viewed as your counterparty in. Some other popular exchanges that book requires gas fees, which without the need for an pairs, extremely costly.
In traditional finance, cash is seen as the most liquid asset, because you can easily exchange it for gold, stocks, bonds, and other assets. Cryptopedia does not guarantee the reliability of the Site content and shall not be held liable for any errors, omissions, or inaccuracies. LP tokens also allow automated market makers AMMs to be non-custodial , meaning you remain in control of your assets and can redeem them at any time.
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