Quote from: Embelen on Today at 07:21:58 PM

Quote from: BOGDONO on April 13, 2021, 09:27:47 PM

Setting up and maintaining a staking pool often requires a lot of time and expertise. Staking pools tend to be the most effective on networks where the barrier of entry (technical or financial) is relatively high. As such, many pool providers charge a fee from the staking rewards that are distributed to participants. How do you do that?

Since larger liquidity pools generate less slippage and bring better trading experience, some protocols (such as Balancer) have begun to incentivize liquidity providers to provide additional tokens to provide liquidity to certain pools .

Due to the existence of this algorithm, no matter how large a transaction is, the pool can always provide liquidity. The main reason for this is that as the required quantity increases, the algorithm will gradually increase the price of the token. The math behind the fixed product market market maker is interesting, but to make sure this article won’t be too long, I’ll save it again.