Liquidity Pool vs Market Maker
Quick comparison to help you distinguish these two crypto terms.
Liquidity Pool
intermediate
fundamentals
A liquidity pool is a smart contract holding reserves of two or more tokens that users deposit to enable decentralized trading, earning a share of transaction fees in return.
Read full definitionMarket Maker
intermediate
market_structure
A market maker is a participant who continuously posts both buy and sell orders on an exchange, providing liquidity so any trader can execute immediately.
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