Liquidity Pools
1. What is a liquidity pool?
A liquidity pool is a collection of cryptocurrency assets that are made available for trading on a DEX.
2. How can I earn passive income from LP?
You can become a Liquidity Provider by depositing your funds in a pool or creating your own pool.
3. How does LP work in the Riverex platform?
4. Why is liquidity good for the crypto market?
Liquidity in cryptocurrency lowers investment risks and makes it easier for you to sell your assets. It also makes it hard to manipulate asset prices, offering stability in prices and less volatility.
5. Is high liquidity better for trading?
High liquidity denotes a healthy, stable market where traders may transact quickly, readily, and fairly.
6. How much commission will I get for being a Liquidity Provider (LP)?
If you are the liquidity creator, you can set the LP Fee percentage from 0-10%. If you are adding liquidity to a pool, your commission is based on what the creator sets; so before you add your funds to a pool, it is recommended to also check the lists of pools along with their corresponding fees.