🌈Liquidity Pools

Liquidity pools are where tokens (also known as liquidity) are pooled together to enable users to trade in a decentralized and permissionless manner. These pools are created by users who hope to profit from their usage and decentralized applications (Dapps). To pool liquidity, the amount provided by users must be evenly distributed between two tokens: the primary token (quote token) and the base token (usually BTC or a stablecoin).