This post will attempt to answer a noob question from user 
Already 
When we see Hive-Engine or any exchange it work as "order book" of buy and sell and user is creating a order in which price user want to "sell the token" or "buy the token" .
But when we see the "defi pools" , we do no create any order of buy and sell instead we get option to "swap" one token to another or vice-versa.
Liquidity provider need to provide the both token in equal "USD" vale(or any other currency) and at any given point of time the "USD" value of both the token in pool will be same. For ex. if "x" amount of Token A has value of $100 in pool then "y" amount of Token B will also have value of $100 in pool.
Here "x" represents the total number of token A in pool and "y" represents the total number of token B in the pool.
Though amount of tokens in pool can change with time and also their ratio to each other in pool is also subject to change.
As a liquidity provider, you are facilitating the "swap" for the seller or buyer and helping in removing the order book that exist in traditional exchange.
If someone swap token A (put in pool) with token B (took out) from pool , then pool will have more token A and less token B and it automatically increase token B price and reduce price of token A as I already said at any given point of time "USD" value of both tokens in a pool is equal.
In a centralized Exchange (forget Hive-Engine) , you always pay fees for executing a order either buy or sell. So in a pool , this fees is collected by liquidity provider.
Unfortunately, in initial design of diesel pool, this fees concept was left out and providing rewards to the Liquidity provider was left with the pool creator or individuals.
But this will change from coming 25th as you read in this post and "swap" in diesel pool will have fee and this fees will be distributed to the liquidity provider in proportion of their share in the pool.
Since daily SPORTS reward in SPORTS:SWAP.HIVE pool is 110K SPORTS
and if someone has .015% share of pool then it will come only some 16 SPORTS token. I will suggest to use Bee swap interface that shows more data.
Another issue is that current Hive-Engine explorer do not record transactions of pool rewards so if you really want to know your exact rewards then isolating the account in which pool is set is one of the solution.
I guess I have couple of point to share.
a.) Do not add Liquidity daily.
Not sure but rewards are skipped next day when you change liquidity (add or remove) so better not to change it frequently.
b.) Beware of Slippage %
As in traditional exchange, a big buy drive the price up and big sell drive the price down, same happen in defi/diesel pool too. Make sure to check Slippage % before executing "swap" in pool.
c.) Pool are instant
Since you "swap" , they are instant . If you want to take benefit of volatile market while you are sleeping, order book might be more convenient to you.
d.) Pool are effective if gap between "buy" and "sell" order is wide.
As I already explained in my previous post , pools increase the efficiency of the market.
Please upvote, comment and reblog.
