AI Hub 17 November 2024 What Do We Call the Entity That Provides Liquidity to the Liquidity Pool on a DEX? Liquidity is the lifeblood of any trading market, and decentralized exchanges (DEXs) are no different. In this article, we will explore the importance of liquidity in DEXs, delve into the concept and mechanics of liquidity pools, tackle the risks and benefits of becoming a liquidity provider, and offer guidance on selecting the right DEX to maximize your advantages. Let’s dive deep into this integral aspect of decentralized finance (DeFi). Introduction Purpose of the article: Liquidity is crucial for the smooth functioning of any trading system, and understanding its role in DEXs can help traders and investors make informed decisions. This article aims to provide a comprehensive understanding of liquidity, its providers, and their interaction with decentralized exchanges. Importance of liquidity in decentralized exchanges (DEX): Liquidity ensures that assets can be...