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Blockchain

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Question:

If you want to provide liquidity to a liquidity pool that swaps Ether into Tether, you need to add either Ether or Tether to the liquidity pool.

Author: timothy Ntambala



Answer:

False. To contribute to a liquidity pool you need to add both currencies in a pre-specified ration to a pool and earn a transaction fee relative to the share in the liquidity pool. However, a risk of impermanent loss exists.


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