Question
What do I receive when I provide liquidity to the pool?
Options
A) Lending Pool.
B) Rendering Pool.
C) Rent Pool.
D) Ring Ding Dong Pool.
Correct Answer
The correct answer is Lending Pool.
Explanation
Lending Pool: When you provide liquidity to a pool in a decentralized exchange, you typically receive tokens representing your share of the pool’s assets. These tokens may sometimes be referred to as participation tokens or liquidity tokens. They entitle you to a portion of the trading fees generated by the pool and can be redeemed for your share of the underlying assets. So, the correct answer is A. Lending Pool.
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