Liquidity pool

Liquidity pool: a collection of funds locked in a smart contract. Centralized: When trading, the seller and buyer agree on the same price => Order execution Decentralized: perform transactions without a centralized party to keep money, each order requires gas fees => raise the transaction price Gas fees: fees are given to measure the computational work of transactions, gas prices are determined by miners. In a nutshell, Gas fees are payments made by users in exchange for the computing power needed to process and validate transactions on the Ethereum blockchain.

Add liquidity

Provider creates a pool for an asset pair, eg ETH + USDT. When the Pool is created, the provider will put the same amount of coins in the pool with the same price. For example: 1 ETH = 2484.52 USDT, then the amount of coins put into the pool must correspond. For each pool created, the provider will receive a new Token representing their Share, called Token Pool. The part of the transaction fee will be paid on each Swap transaction, divided by the Shares. For example, if the transaction fee is 0.3%, if the provider has contributed 10% to the ETH+USDT Pool, they will receive 10% of that 0.3%.