Liquidity locked crypto meaning

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Author: Admin | 2025-04-28

Of locked coins and the period of storage of the crypto assets.Crypto lendingThis method of generating a passive income is similar to a bank deposit. You lend your funds directly through P2P platforms or via an intermediary (a decentralized lending platform or a centralized exchange) with an interest rate.This means your crypto assets work on your behalf, and the intermediary (if you lend using one) guarantees the fulfillment of all the conditions of the transaction, meaning that you don’t need to trade on the market and risk your savings in order to receive income. In exchange for providing guarantees, the platform takes a certain percentage of your profits.A list of crypto lending platforms can be found on defillama.com, in the “Lending” column.FarmingAnother popular way to earn passive income in crypto is farming/yield farming. Crypto is stored in a liquidity pool, and in exchange, you receive LP tokens (liquidity provider tokens), which you can also use to earn additional income by staking them.A liquidity pool is a collection of tokens locked in a smart contract. They are used to facilitate decentralized trading, lending, and other functions.If you want to buy a certain amount of crypto – ETH for USDT, for example – you don't need to wait until someone wants to sell the amount of ETH you need in exchange for USDT. The funds will be taken from the liquidity pool, and the exchange will be executed instantly.A pair of cryptocurrencies is placed in the liquidity pool. Users who add pairs

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