How do LIQUIDITY POOLS work? (Uniswap, Curve, Balancer) | DEFI Explained

Liquidity pools, in essence, are pools of tokens that are locked in a smart contract. They are used to facilitate trading by providing liquidity and are extensively used by some of the decentralized exchanges a.k.a DEXes.

One of the first projects that introduced liquidity pools was Bancor, but they became widely popularised by Uniswap.

Curve realised that the automated market making mechanism behind Uniswap doesn't work very well for assets that should have a very similar price, such as stable coins or different flavours of the same coin, like wETH and sETH. Curve pools, by implementing a slightly different algorithm, are able to offer lower fees and lower slippage when exchanging these tokens.

The other idea for different liquidity pools came from Balancer that realised that we don't have to limit ourselves to having only 2 assets in a pool and in fact Balancer allows for as many as 8 tokens in a single liquidity pool.

[iraborprecious]

The fact the *Apexdeft* was facing adventures to help the people was so kind. Mad respect to you man. Appreciate all you do to help others. You are setting a great example for the community

[FaithDavid-pxgy]

I can't imagine how hard it would be to decide to take on a moneygetback role of scammed person, The history needs to be remembered though and the help that was born through such pain and suffering. Mad respect to these *Apex Deft*

[JesseDWilliamsJr]

Had to watch this 17 times, take a nap, then watch it again before it finally started to make sense lol

[LessieTaft]

I'm an old fart who is excited to see you younger folks handling business in this fashion. You folks are a great example for your Tech generation. *Adriannotch*

[oliverconstantine]

This was legitimately so wholesome. You can tell at the ending of getting your money back that it wasn't scripted at all when *Apex Deft* proposed.... This warmed my heart today! Congratulations guys! So happy for y'all!

[CHRISTIANTYLERI]

Man, this one hit me in the heart. She reminds me of my aunt, who is an incredibly giving person and donates more than anyone I know. Sometimes her kindness is taken of advantage of, and it makes my blood boil. Thank you guys for saving her $980, 700. You dramatically changed her life for the better. The scammers don't stop after 1 success. Thank you, thank you, thank you Nicholas and *Strongwidget* team. You guys are heroes to me.
I'm just so happy this dudes is coming back stronger than ever and i can't begin to express how excited i am for the future jobs. i love these guys so Dearly

[cryptstle]

The world can't even imagine the size of the love, pride and affection that I have of the guy. *Strong widget, * you're an amazing guy bro! Really appreciate this, *Strong widget*, Incredibly useful and digestible content. You're making an impact and you deserve the reward. Keep it up.

[Wildivn]

The amount of bravery this took was INSANE. These people all had their lives in danger, but still decided to go through with the recovery for the sake of busting bad scammers. True respect *Strong widget!*
If the FBI was half as dedicated and ingenious (and honest) as you guys are, the USA would be a much safer country.
Amazing work!

[EffieEzell]

Mate, you and Adriannotch are modern day superhero's. I feel so grateful and proud that there are folk out their actively going out of their way to do all of this. More-so, you are both incredibly powerful in the way you can access the scammers wallet and recovered the lost funds and I pray you keep this up for as long as possible. You are both the only YouTubers I would ever considering paying to support because this is remarkable and everyone of us appreciates it. Thank you.

[EnochClem]

Absolutely love watching these videos. *Adriannotch* You and the whole crew are amazing and heroes. Saving as many people as you can from these horrible people. Keep getting these bottom feeders and bring back our peace of mind.

[khalilhaydari-hkju]

Thank you ADRIANNOTCH for all of your assistance We would not have finished the job on time if it hadn't been for your hard work, patience, and agility. You're fantastic!!!!

[abdirisaaqhussein]

This man has shown impressive determination and continuous progress. He provides us with a deeper understanding of himself without the need for interviews or negative actions. Through his recovery, he demonstrates his true character and becomes a living legend. We admire his incredible comeback and the inspiring execution, creativity, and positivity that emerged from it. We salute you, Adriannotch, and eagerly anticipate your future endeavors.

[Hanna-mmyn]

love your videos. They are very educative. I wish every elderly person out there would watch it. Thank you very much for the time and effort you put into it. Every minute you spend with them is one less minute they lose stealing from an innocent victim. *Adriannotch* Enjoy the rest of your Sunday and I'm looking forward to the next video.

[vincentkipkorir]

I love how *Adriannotch* is a part of everything. These videos are going to be something so memorable and special for the scammed people to look back on.

[aminuhamza]

Honestly *Strongwidget* having you is sincerely comforting and the consistency of you being here to come back to over the years means so much to me and l'm sure a lot of others as well. I think a lot of us are just happy to see that you are happy, I mean seeing us living our dream is super inspiring and warms my heart in a way not a lot of other things can💕

[calistabenson]

This *Strong widget* on the internet is stuck in my brain and it is very beautiful. I listen to their advice every day. It is one of my favorite recovery agent and I loved it very much. Thank you to those who performed it. Long live, especially from Iraq. 🗿💖

[mayacarlos]

Comparing this crypto recovery to the impossible maze challenge, the difference in the level of the sets proves how well *Strong widget* has done over the. years.. the TIME and EFFORTS you had put into this work that is beyond excellence. Take my cordial thanks! You are really an efficient, organized and result-oriented man Thank you for all the extra hours and extra effort you had to put on for getting my money back. appreciate every bit of your effort. Thank you for pulling this off my head

[tarball]

My takeaway: there's 2 main models in exchanges, order book and automated market maker (AMM). Order book basically matches buy and sell orders continuously, and a lot of the liquidity actually comes from "market makers". AMMs on the other hand, don't match specific orders continuously, instead when you want to swap, you interact with a liquidity pool, which has a token pair. So it's like asynchronous vs synchronous swapping. When you swap, this changes the ratio of tokens in the LP, which in turn changes the price, due to supply and demand. So there is opportunity for arbitrage here. When you are a liquidity provider, you are depositing some tokens into a pool, and you earn a portion of the trading fees based on the amount you deposit.

[deelauschus]

*HONESTLY, HE'S AN AMAZING PERSON. HE USES HIS TIME, MOVES AND BASICALLY HIS LIFE INTO HELPING PEOPLE WHO ARE LESS FORTUNATE. USING AN EXCELLENT MONEY RECOVERY MODEL AS WELL IN MAKING PROFITS, HE REALLY IS STILL DOING IT OUT OF HIS OWN HEART. YOU REALLY ARE A SAINT STRONGWIDGET AND A WONDERFUL WONDERFUL PERSON. LOVE FROM ALLSTATE.*

[AndoOKC]

This guy is second to none in helping you develop fundamentals