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Author: Admin | 2025-04-28
Liquidity providers to pledge the equivalent value (50/50) of two crypto assets to available pools so that a balanced pair can be maintained. (Balancer has taken an innovative approach, allowing as many as eight tokens in a liquidity pool.)But there’s also a less cumbersome way.You can “zap” into a liquidity pool—adding liquidity in just one transaction through platforms like Zapper, which invented the concept in 2020. Just go to zapper.fi and connect your wallet. Click “pools” to list the liquidity pools available for zapping in and out. Add liquidity to the pool using whatever asset you have. Zapper will exchange them into equal splits of the relevant pair. That saves a couple of separate transactions!However, Zapper doesn’t list all liquidity pools on DeFi, restricting your options to the biggest ones.The future of liquidity poolsLiquidity pools operate in a competitive environment, and attracting liquidity is a tough game when investors constantly chase high yields elsewhere and take the liquidity.Nansen, a blockchain analytics platform, found that 42% of yield farmers who provide liquidity to a pool on the launch day exit the pool within 24 hours. By the third day, 70% will be gone.To tackle this problem, known as “mercenary capital,” OlympusDAO has experimented with “protocol-owned liquidity.” Instead of setting up a liquidity pool, the protocol lets users sell their crypto into its treasury in exchange for its discounted protocol token, OHM. Users could stake OHM for high yields.But the model has run into a similar problem—investors who just want to cash
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