What do we call the token trading pairs that DEX creates for AMM?
Options
A) Liquidity Priority.
B) Liquidity Pool.
C) Liquidity Demand.
D) Liquidity Policy.
Correct Answer
The Correct Answer is Liquidity Pool.
Explanation
In the context of a DEX and AMM, a liquidity pool refers to a collection of funds locked in a smart contract. Traders trade against this pool rather than against other individual traders, and it helps facilitate decentralized trading. So, the correct answer is B. Liquidity Pool.
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