Different types of liquidity pools. Types of Liquidity Pools Types of Liquidity Pools There are several types of liquidity pools that are used in DeFi, each with its own Email List characteristics and advantages. Here are some of the most common types: Constant product pools These are the most common type of liquidity pools and use an AMM algorithm to maintain a constant product between the two tokens in the pool.
This means that as one token is bought, its price increases, and the price of the other token decreases, maintaining the constant product. Constant sum pools These pools use an AMM algorithm to maintain a constant sum of the two tokens in the pool. This means that as one token is bought, its price increases, and the price of the other token also increases, maintaining the constant sum. Harness the Power of AI Talent Analytics Hybrid pools These pools combine elements of both constant product and constant sum pools and can be customized to meet specific requirements.