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| - | ===== Laboratorul 07. ===== | + | ===== DeFi - Introduction to Liquidity Pools ===== |
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| + | Liquidity pools are crucial for peer-to-peer trading in DeFi. | ||
| + | Liquidity is the ability of an asset to be sold or exchanged quickly and without affecting the price. In other words, liquidity is a measure of how easily an asset can be converted. | ||
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| + | Traditional exchanges use order books: | ||
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| + | {{:fob:laboratoare:tradeville_trade_list.png?500|}} | ||
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| + | Q: What if I want to buy/sell large amounts? | ||
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| + | Problem 1: Price moves for several levels. | ||
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| + | Problem 2: There may not be enough liquidity. | ||
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| + | Why are liquidity pools useful? | ||
| + | * enable users to trade on DEXs | ||
| + | * eliminate middlemen and centralized entities | ||
| + | * Liquidity providers get incentives | ||
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| + | {{:fob:laboratoare:liquidity_pools.png?500|}} | ||
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| + | ==== Liquidity Providers ==== | ||
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| + | <note important>Go to Devnet Wallet and use the Faucent tool to get some xEGLD.</note> | ||
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| + | Use [[https://devnet.maiar.exchange/|Devnet Maiar DEX]] to be a liquidity provider: | ||
| + | - Login with your wallet; | ||
| + | - Go to **Swap** tab; | ||
| + | - Swap 1 EGLD to USDC. //Who provided the USDC for you to swap?// | ||
| + | - Go to **Liquidity** tab; | ||
| + | - Add Liquidity: Use EGLD and USDC tokens; | ||
| + | - Perform several swaps; | ||
| + | - Remove Liquidity; | ||
| + | - Compare tokens in (provided when added liquidity) to tokens out (obtained when removed liquidity). If swaps were made in between, you should have gained some value from fees. | ||
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