What is the purpose of a “liquidity pool” in a decentralized finance (DeFi)?

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In this guide, you’ll learn the answer to “What is the purpose of a “liquidity pool” in a decentralized finance (DeFi)?” in Marina Protocol.

What is the purpose of a “liquidity pool” in a decentralized finance (DeFi)?

Question: What is the purpose of a “liquidity pool” in a decentralized finance (DeFi)?

Answer: To provide liquidity for decentralized exchanges.

Further reading

Which blockchain consensus algorithm aims to achieve agreement through a combination of resource ownership and identity verification?

What is the term for a blockchain upgrade that is backward-compatible and does not result in a split of the blockchain?

Which blockchain platform is known for its focus on enabling the creation of non-fungible tokens (NFTs)?

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