Link token in the Liquidity Agreement effortlessly

Aug 6th, 2022
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How to Link token in the Liquidity Agreement

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after you launch your how can you control its price you might want to control the price at the beginning when you list the as well as later im going to show you how to do this in this video what i will explain applies to uni swap and any of its forks like sushi sua pancake swab etc if you dont know me im julian and on eat the blocks i teach blockchain development [Music] before i show you how to control the price of your you need to understand how the price of s is a determined on the decentralized exchanges in a decentralized exchange like uni swap or pancake swap markets are organized in a liquidity pools in each liquidity pool you have two assets for example cake and bnb bnb and busd etc in each liquidity pool traders can buy in both directions for example for the pool cake bnb you can buy some cake by providing some bnb or you can buy some bnb by providing some cake what makes this liquidity pool so special is the concept of automated market maker in an automated market maker

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However, if you use liquidity pool services in a centralized finance (CeFi) setting on an exchange, you likely wont receive LP s. These will instead be held in custody by the custodial service provider. Your LP will typically have the name of the two s youre supplying liquidity in.
Perhaps the most inherent risk of owning LP s is impermanent loss. By providing liquidity, you may suffer from inherent loss when the value of the amount youve deposited is greater than the value you withdraw upon exiting the pool. Impermanent loss occurs due to price changes over time.
Liquidity is the ability to buy and sell a without affecting its market price. A liquidity pool is a pair of s locked in a smart contract to facilitate trading.
You can add liquidity for any pair by staking both through the Liquidity page. In return for adding liquidity, youll receive trading fees for that pair, and receive LP s you can stake in Farms to earn CAKE rewards!
Liquidity Provider s, or LP s for short, are a reward mechanism to help facilitate transactions between other different types of currencies. Decentralized exchanges rely on Liquidity Providers to ensure there is an always-on market for the trading of cryptocurrencies.
Liquidity pools and AMMs (automated money makers) rely on smart contracts to execute trades. If someone bugs or exploits the smart contract, the trader might lose the funds in that exchange. Its important to note this is a risk taken when using any decentralized exchange platform.
However, if you use liquidity pool services in a centralized finance (CeFi) setting on an exchange, you likely wont receive LP s. These will instead be held in custody by the custodial service provider. Your LP will typically have the name of the two s youre supplying liquidity in.

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