Liquidity pools power decentralized finance by letting users deposit crypto into shared pools that enable trading and earn rewards. This beginner-friendly guide explains how they work, why they’re essential to platforms like Uniswap and ShibaSwap, and how to earn safely while managing risks like impermanent loss and token volatility. The post What Are Liquidity Pools And How They Really Work In Decentralized Finance first appeared on The Shib Daily.
source: https://news.shib.io/2025/10/22/what-are-liquidity-pools-and-how-they-really-work-in-decentralized-finance/