Decentralized Finance (DeFi)
Liquidity
Liquidity refers to how easily one asset can be converted to another without causing a drastic change in the asset's price.
Crypto currencies with low liquidity are assets where each trade will have a big impact on the token/coin's price.
On the other hand, crypto currencies with high liquidity are assets where each trade will have a small impact on the token/coin's price.
Pool
A liquidity pool is a bunch of crypto currencies locked in a smart contract.
Provider
A liquidity provider is someone who funds a liquidity pool with crypto assets.
It facilitates trading on the platform and in return, the provider earn passive income on his deposit.
DeFi Aggregator
A DeFi aggregator brings trades across decentralized exchanges like Uniswap, into one place.
It saves users time and increases efficiency for better trades by finding lowest fees & best trades accross multiple markets & blockchains.
Some DeFi aggregators:
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