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DeFi by Cointelegraph: What directional liquid pooling brings to the table


DeFi benefits from directional liquidity pooling

Modern Decentralized exchanges (DEXs). LP mainly rely on liquidity providers to provide tokens that can be traded. These liquidity providers receive a portion of trading fees generated by the DEX. Unfortunately, while liquidity providers earn an income via fees, they’re exposed to impermanent loss if the price of their deposited assets changes.

Directional liquidity pooling, a new system that is different than the traditional DEXs system, aims to reduce the risk for liquidity providers of permanent loss.