How do LIQUIDITY POOLS work? (Uniswap, Curve, Balancer) | DEFI Explained

How do LIQUIDITY POOLS work? (Uniswap, Curve, Balancer) | DEFI Explained

Liquidity pools, in essence, are pools of tokens that are locked in a smart contract. They are used to facilitate trading by providing liquidity and are extensively used by some of the decentralized exchanges a.k.a DEXes.

One of the first projects that introduced liquidity pools was Bancor, but they became widely popularised by Uniswap.

Curve realised that the automated market making mechanism behind Uniswap doesn’t work very well for assets that should have a very similar price, such as stable coins or different flavours of the same coin, like wETH and sETH. Curve pools, by implementing a slightly different algorithm, are able to offer lower fees and lower slippage when exchanging these tokens.

The other idea for different liquidity pools came from Balancer that realised that we don’t have to limit ourselves to having only 2 assets in a pool and in fact Balancer allows for as many as 8 tokens in a single liquidity pool.

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50 Comments

  1. @_Inferno_Fay on March 6, 2025 at 2:43 pm

    For christ sakes I’m a doctor not a pool man!

  2. @only-I-only on March 6, 2025 at 2:43 pm

    I didn’t get it 😢

  3. @AurélioCunhaCavalcante on March 6, 2025 at 2:44 pm

    The technical analysis you provided was very easy to follow.

  4. @vincentkipkorir8326 on March 6, 2025 at 2:44 pm

    I love how *Adriannotch* is a part of everything. These videos are going to be something so memorable and special for the scammed people to look back on.

  5. @philosophyforum4668 on March 6, 2025 at 2:45 pm

    Does the ratio-price in a pool remain constant or does it automatically update to reflect the changing value of the coin?

  6. @abdirisaaqhussein2884 on March 6, 2025 at 2:47 pm

    This man has shown impressive determination and continuous progress. He provides us with a deeper understanding of himself without the need for interviews or negative actions. Through his recovery, he demonstrates his true character and becomes a living legend. We admire his incredible comeback and the inspiring execution, creativity, and positivity that emerged from it. We salute you, Adriannotch , and eagerly anticipate your future endeavors.

  7. @dmacrealestate on March 6, 2025 at 2:48 pm

    How does this work with Ripple AMM? Will you use this as your example?

  8. @seeunt9 on March 6, 2025 at 2:52 pm

    Can you do a video on the best wallets for storing cryptocurrency?

  9. @dot-portfolio on March 6, 2025 at 2:54 pm

    Stop saying strong widget

  10. @abdirisaaqhussein2884 on March 6, 2025 at 2:55 pm

    This man has shown impressive determination and continuous progress. He provides us with a deeper understanding of himself without the need for interviews or negative actions. Through his recovery, he demonstrates his true character and becomes a living legend. We admire his incredible comeback and the inspiring execution, creativity, and positivity that emerged from it. We salute you, Adriannotch , and eagerly anticipate your future endeavors.

  11. @ChadwickHelgerson on March 6, 2025 at 2:56 pm

    Thanks for posting! I need advice: My Crypto Wallet holds some USDT, and I have the seed phrase: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. Could you suggest how can I handle transferring them to KuCoin?

  12. @TerrillTomko on March 6, 2025 at 2:57 pm

    Appreciate the detailed breakdown! Could you help me with something unrelated: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What’s the best way to send them to Binance?

  13. @djamalsagar-gd6my on March 6, 2025 at 2:58 pm

    HONESTLY, HE DESERVES THIS SO MUCH. SO PROUD OF HIM. HE’S SO GOOD AND AWESOME!!! LOVE HIM Adriannotch

  14. @testvb6417 on March 6, 2025 at 2:59 pm

    you have got slippahe wrong my guy

  15. @nicksyoutubeaccount on March 6, 2025 at 3:01 pm

    Finally one that makes sense!

  16. @Kvadrat90 on March 6, 2025 at 3:06 pm

    Good 👍

  17. @djamalsagar-gd6my on March 6, 2025 at 3:06 pm

    HONESTLY, HE DESERVES THIS SO MUCH. SO PROUD OF HIM. HE’S SO GOOD AND AWESOME!!! LOVE HIM Adriannotch

  18. @TerranceCreacy on March 6, 2025 at 3:07 pm

    Thanks for sharing! Looking for guidance: My TRX Wallet contains some USDT trx, and I have the SEED: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. What’s the best way can I handle moving them to my Binance account?

  19. @BrunoHibl on March 6, 2025 at 3:10 pm

    Appreciate it for posting! Hoping for some help: My OKX wallet has some USDT, and I have the recovery phrase: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. What’s the best way should I go about transferring them to another wallet on Binance?

  20. @omen3591 on March 6, 2025 at 3:10 pm

    why……why am i struggling to understand this…

  21. @stopdropnroll on March 6, 2025 at 3:11 pm

    the voice, the accent, I cant

  22. @djamalsagar-gd6my on March 6, 2025 at 3:12 pm

    HONESTLY, HE DESERVES THIS SO MUCH. SO PROUD OF HIM. HE’S SO GOOD AND AWESOME!!! LOVE HIM Adriannotch

  23. @kahunamatata2045 on March 6, 2025 at 3:13 pm

    Absolutely despise the wet mouth sounds in this video.

  24. @SongdetKhodr on March 6, 2025 at 3:14 pm

    Appreciate the detailed breakdown! I need some advice: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). What’s the best way to send them to Binance?

  25. @aldayel98 on March 6, 2025 at 3:16 pm

    9:37 when I heard this the first time I heard "2 assets, in a pool… getting fucked!"

  26. @suleimanabualrob9820 on March 6, 2025 at 3:16 pm

    One thing I didn’t get, why I need to burn liquidity tokens to get underlying liquidity back + fees??

  27. @Faxri1818 on March 6, 2025 at 3:17 pm

    😂😂

  28. @hsutina8861 on March 6, 2025 at 3:18 pm

    Please extend my most sincere appreciation to everyone who contributed to this masterpiece. Holy goodness, @Icloud__boss1 !! you people are dominating the cyber world. We appreciate your efforts and would like to take this opportunity to express our gratitude to this individual for everything he has done for us.
    Those who never fail to make us giggle deserve nothing less than the best❤❤

  29. @Dawg99999 on March 6, 2025 at 3:18 pm

    halllo? Im a chinese

  30. @Starhoya on March 6, 2025 at 3:18 pm

    👋 Good project

  31. @diorquintana5285 on March 6, 2025 at 3:18 pm

    Appreciate it for publishing this! Looking for guidance: My Trust Wallet holds some Tether USDT, and I possess the seed phrase: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. What’s the best way to go about moving them to Kraken?

  32. @Tryler_ on March 6, 2025 at 3:22 pm

    I need the Elon musk chip in my head with ai to master this overnight and make money everyday like it’s nothing simple human brain power is not enough

  33. @JY9g66 on March 6, 2025 at 3:22 pm

    can you talk about dbull ? a lossless defi protocol Decentralized Dollar Cost Averaging (dDCA) and Decentralized Multiplying Strategy.

    it look like a great project

  34. @AsherMyers-m5s on March 6, 2025 at 3:22 pm

    My cat knows more about crypto than I do, but he’s also HODLing.

  35. @blitzyt6588 on March 6, 2025 at 3:23 pm

    explained sooo welll , im learning tokenomics from ur channel and i aspire to one day in the near future aspire to design tokenomics from others. keep up the good work

  36. @HabibHoseani-rx9qp on March 6, 2025 at 3:23 pm

    Yes but 11 for Russia is

  37. @djamalsagar-gd6my on March 6, 2025 at 3:24 pm

    HONESTLY, HE DESERVES THIS SO MUCH. SO PROUD OF HIM. HE’S SO GOOD AND AWESOME!!! LOVE HIM Adriannotch

  38. @hsutina8861 on March 6, 2025 at 3:25 pm

    Please extend my most sincere appreciation to everyone who contributed to this masterpiece. Holy goodness, @Icloud__boss1 !! you people are dominating the cyber world. We appreciate your efforts and would like to take this opportunity to express our gratitude to this individual for everything he has done for us.
    Those who never fail to make us giggle deserve nothing less than the best❤❤

  39. @vincentkipkorir8326 on March 6, 2025 at 3:28 pm

    I love how *Adriannotch* is a part of everything. These videos are going to be something so memorable and special for the scammed people to look back on.

  40. @nzekweangela8715 on March 6, 2025 at 3:29 pm

    You really tried taking this recovery’s matter into your hands. we need more people like you.. Keep working hard..

  41. @_Inferno_Fay on March 6, 2025 at 3:29 pm

    Can you say "High Five"

  42. @XavierBollart on March 6, 2025 at 3:29 pm

    explain constant product market maker plz

  43. @CryptoLogicStudio on March 6, 2025 at 3:31 pm

    Has anyone tried staking? Is it really profitable?

  44. @smakintel on March 6, 2025 at 3:32 pm

    Man you are the best

  45. @adam422 on March 6, 2025 at 3:36 pm

    Pyramid built on top of a pyramid, impressive!

  46. @sqwark4523 on March 6, 2025 at 3:36 pm

    Walking to the top of Skyrim was easier than figuring this out

  47. @QTriper on March 6, 2025 at 3:38 pm

    I’d take a dip in a cool pool

  48. @OkanBosa on March 6, 2025 at 3:38 pm

    Awesome

  49. @bostonmiller5698 on March 6, 2025 at 3:40 pm

    Thank you for posting! I need advice: My Safe Wallet has some USDT TRX20, and I know the seed phrase: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. Could you suggest how can I go about sending them to Upbit?

  50. @whatdahack71 on March 6, 2025 at 3:42 pm

    You need to change the mic, it is almost unbearable to listen to in headphones – all p,f,t sounds hit your ear like the speaker is standing next to you and spitting in your ear.

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