Beginner
Blockchain & Web3
Q32 / 100
What is a "liquidity pool" in DeFi?
Correct! Well done.
Incorrect.
The correct answer is A) A smart contract holding reserves of two or more tokens, used to facilitate decentralized trading and earn fees for providers
A
Correct Answer
A smart contract holding reserves of two or more tokens, used to facilitate decentralized trading and earn fees for providers
Explanation
Liquidity pools let users deposit token pairs into a smart contract, enabling automated trading (e.g., via AMMs) while providers earn a share of trading fees.
Progress
32/100