A liquidity pool is a collection of crypto assets, funds, or tokens, locked in a smart contract. Liquidity pools are used to facilitate decentralized trading and lending on Solana.
Liquidity Provider
A liquidity provider on Solana is someone who deposits their tokens into a liquidity pool, facilitating decentralized trading and earning transaction fees in return.
Liquidity Pool Token
Liquidity Pool Tokens on Solana are issued to users who contribute to a liquidity pool, representing their stake and share of transaction fees from that pool.
Lending / Borrowing Protocol
A Solana lending protocol is a decentralized platform where users can lend and borrow cryptocurrencies, earning interest on loans provided and using other crypto assets as collateral.
DeFi Safety Tips
Here are things to keep in mind when using DeFi protocols
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Do your own research before participating in DeFi projects
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Don't participate with more than you can afford to lose
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Understand the inherent risks, including market volatility