Liquidity Pools

Swapping is enabled only when there is liquidity, and thereby exists the need for liquidity pools.

What are Liquidity Pools?

When users provide liquidity, two tokens are provided simultaneously in equal USD values at the point in time. This forms a liquidity-pool of the two tokens, which enables users to swap these tokens on Revoswap.

Swapping is difficult, expensive or impossible when there is insufficient liquidity for the tokens. Thus, by providing liquidity, you receive LP tokens, which earns you rewards in the form of trading fees.