Spookyswap Liquidity Pools Explained
Spookyswap Liquidity Pools Explained: at a glance, they let users supply token pairs to a decentralized exchange on Fantom in exchange for trading fees and token incentives. This article explains how the pools work, what drives returns, and the specific risks—like impermanent loss and smart-contract exposure—so you can decide whether to provide liquidity or just trade. Spookyswap Liquidity Pools Explained — Quick answer SpookySwap liquidity pools are pools of token pairs (e.g., FTM/USDC) on a decentralized exchange where liquidity providers (LPs) deposit equal-value amounts of each token. In return LPs receive an LP token representing their share and earn a portion of swapping fees plus possible farming rewards. Pools are powered by an automated market mechanism and run on the Fantom network, so transaction costs are typically lower than on Ethereum. How SpookySwap liquidity pools work At the core, SpookySwap uses an AMM model where token prices are dete...