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RABBIT rabbit finance in India ✌️【Career Counseling】✌️₹500 to start, high returns to earn. Join now and watch your wealth increase!Liquidity is a fundamental part of both the crypto and financial markets.

It is the manner in which assets are converted to cash quickly and efficiently, avoiding drastic price swings.

If an asset is illiquid, it takes a long time before it is converted to cash.

You could also face slippage, which is the difference in the price you wanted to sell an asset for vs.

RABBIT rabbit finance in India ✌️【Career Counseling】✌️Start with ₹500 and grow your wealth using AI-powered investment strategies.The price it actually sold for.Imagine waiting to order inside a fast-food restaurant.

Liquidity is comparable to having lots of cashiers.

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RABBIT rabbit finance in India ✌️【Career Counseling】✌️₹500 to start, high returns to earn. Join now and watch your wealth increase!On the other hand, illiquidity is comparable to having only one cashier with a long line of customers.

RABBIT rabbit finance in India ✌️【Career Counseling】✌️Invest ₹500 and enjoy the benefits of high returns each month!That would lead to slower orders and slower transactions, creating unhappy customers.In traditional finance, liquidity is provided by buyers and sellers of an asset.

In contrast, DeFi relies on liquidity pools to function.

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It won’t survive.

Liquidity pools provide a lifeline to DEXs.A liquidity pool is a digital pile of cryptocurrency locked in a smart contract.

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RABBIT rabbit finance in India ✌️【Career Counseling】✌️₹500 to start, high returns to earn. Join now and watch your wealth increase!An AMM is a protocol that uses liquidity pools to allow digital assets to be traded in an automated way rather than through a traditional market of buyers and sellers.In other words, users of an AMM platform supply liquidity pools with tokens, and the price of the tokens in the pool is determined by a mathematical formula of the AMM itself.Liquidity pools are designed to incentivize users of different crypto platforms, called liquidity providers (LPs).

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