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19.12.2023

How does a liquidity pool work?

The Dexsport platform is dedicated to creating a decentralized world where participants interact with a shared liquidity pool and receive their winnings instantly. But what exactly is a liquidity pool? The system serves as a collective vault where market participants contribute their assets to create a substantial pool of liquidity.

In simpler terms, the process is straightforward: you place your bet, win your bet, and receive your winnings instantly. This is made possible by the cumulative balance of the platform's locked liquidity. The balance is transparently accessible to all participants in the transaction and is continually replenished by the investors or asset providers contributing their assets for a percentage.

By engaging with the liquidity pool within the context of the Web 3.0 concept, we address several issues simultaneously: prevention of fraud, elimination of delayed payments, reduction of reliance on centralized systems, avoidance of sudden fund freezes in accounts, and enhancing personal fund control.

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