Liquidity pools are the inherent aspect of the Decentralized Exchange (DEX). You need to have both tokens in equal proportion to provide the liquidity.
Source: Cointelegraph
One of the first projects that introduced liquidity pools was Bancor, but they became widely popularized by Quickswap and Uniswap. Now it has become interesting tool for many of the hivers to earn different tokens and provide the liquid tokens on Tribaldex for rewards.
#cent was one of the few tokens which offers the liquidity pools for
- swap:hbd,
- leo
- swap:hive
- pob
Those who provide the liquidity are compensated in rewards. On tribaldex there is a concept of diesel pool where you can add liquidity if you can lock in your tokens for atleast a day or more.
I am one of the liquidity providers on tribaldex.
It is very useful in the wake of bot trading where you are never the lowest buyer or highest seller as the market maker bots always surpass your price and its automated so the orders are executed for those who always use these tools. Liquidity pools are comparatively instant if you agree to their prices.
Yesterday, I noticed that there is a liquid #vyb reward coming in for the #cent:#swap:hive pair. This is I guess a good use case for the new tribe. This I believe is the only pair which is offering the liquid rewards in #vyb.