I use liquidity pools on and off and have a tendency to get burned by them. Ie. the impermanent loss generally gets me. I put two tokens in the pool and one goes up and one goes down and the market pulls the value out of the higher tokens. ( My opinion) I believe it is because I get in ones that are too volatile. I understand LPs and use them to swap tokens a good bit. Checking on which gives better prices Leofinance or the pool. My big question is how does a liquidity pool interact with the market? When I trade with a Liquidity pool it shows a slippage. How does a pool and the market stay in sync? Does the pool actually trade in the background?
!PIZZA